ST. PAUL, MN – House Majority Whip Tom Emmer (R-MN) sent a sharply worded letter to Governor Tim Walz on Monday, demanding answers and immediate action over what he described as a “large-scale fraud scheme” involving daycare and healthcare centers across Minnesota. The letter accuses the Walz administration of failing to prevent or detect widespread misuse of state and federal funds allegedly funneled through Somali-run businesses.
In the December 29 letter, Emmer cited recent reporting by investigative journalist Nick Shirley, who claimed that billions of taxpayer dollars were funneled through Minnesota’s Child Care Assistance Program (CCAP) and other aid channels to fraudulent operations. Emmer called the situation “a national disgrace,” alleging that an estimated $9 billion had been stolen — a sum he said was nearly equivalent to Somalia’s entire Gross Domestic Product.
“Governor Walz, amid the national disgrace you’ve inflicted upon Minnesota, I have become further appalled at the recent reports of a blatant, large-scale fraud scheme,” Emmer wrote. “I demand you take immediate action to hold these criminals responsible, and, for your sake, I pray you were not complicit in allowing these centers to survive.”
The letter references Shirley’s reporting, which claims that multiple daycare and healthcare centers licensed under the state operated at empty or near-empty facilities while collecting millions in public funds. Emmer cited several specific examples, including centers that allegedly received state payments for hundreds of nonexistent children and healthcare operations that could not produce rate documentation while funneling tens of millions of dollars annually.
Emmer pressed Walz to respond by January 9, outlining five specific requests: steps taken to eliminate fraud within CCAP, the state’s auditing process for healthcare and daycare centers, prior investigations into the facilities named in Shirley’s report, an explanation for how some centers were relicensed under new names, and whether criminal referrals will follow any license revocations.
The Minnesota Department of Human Services previously acknowledged fraud concerns within CCAP and commissioned an audit in 2018, which found significant gaps in oversight but no verified estimate of total losses. Emmer’s letter renews those concerns, accusing Walz’s administration of “ignorance or indifference” and demanding greater transparency.
As of Tuesday, the governor’s office had not issued a public response.
Rep. Tom Emmer has called on Gov. Tim Walz to explain how alleged fraud in Minnesota’s daycare and healthcare funding programs went unchecked.
