Senate pressure mounts as Minnesota fraud scandal continues to unfold

Senator Jim Banks calls for federal investigation into alleged Minnesota childcare fraud involving fake daycare centers and Somali networks.

Citing his role on the Senate HELP Committee, Banks is pressing HHS to scrutinize Minnesota’s federally funded childcare system amid mounting allegations of widespread fraud and state-level oversight failures. (Bill Clark )

"I urge ACF to investigate reports of Somali networks creating fake ‘daycare centers’ as vehicles to steal millions of dollars from Minnesota’s Child Care Assistance Program (CCAP), which administers hundreds of millions of dollars in federal childcare subsidies each year," Banks’ letter to HHS reads. 

"Clearly, the Walz administration has failed to meet the most basic benchmarks required by ACF," Banks explained. "Any unlawful behavior uncovered in ACF’s investigation must be immediately referred to the proper federal authorities including ICE, the Department of Homeland Security, and Federal prosecutors."

The Department of Homeland Security’s HSI and ICE agents were on the ground in Minnesota on Monday, and Secretary Kristi Noem posted to X that the agency was "conducting a massive investigation on childcare and other rampant fraud."

Minnesota locations accused of fraudulent claims were investigated by Fox News Digital, uncovering vacant lots and non-existent suites. (Nikolas Lanum/Andrew Mark Miller/Fox News Digital)

The scandal also sparked internal backlash within the state government. More than 400 Minnesota employees raised concerns that Gov. Tim Walz, who later became the Democratic vice presidential nominee on the Kamala Harris ticket, failed to respond adequately to repeated warnings about fraud and allowed retaliation against whistleblowers who tried to bring the misconduct to light.

Banks notes the importance of ensuring everyone behind the scandal is brought to justice, as well as holding elected officials and those who had responsibility over the matter accountable.

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"Minnesota’s childcare system relies on American taxpayer dollars," Banks told Fox News Digital. "As a member of the HELP Committee, I am calling for an investigation into the fake childcare centers run by Somali crime networks. 

Tim Walz, Minnesota’s governor at the center of mounting fraud scrutiny, is facing renewed criticism over allegations that his administration ignored warning signs as billions in taxpayer-funded aid were allegedly abused. (Michael Dorgan/Fox News Digital; Scott Olson/Getty Images)

"I will not stand by while tax dollars meant to support hardworking families are stolen and state officials refuse to act," Banks added.

Fox News Digital reached out to DHS, HHS and Gov. Tim Walz but did not receive responses in time for publication.

Preston Mizell is a writer with Fox News. Story tips can be sent to Preston.Mizell@fox.com and on X @MizellPreston

Preston Mizell is a writer with Fox News Digital covering breaking news.

https://www.foxnews.com/politics/senate-pressure-mounts-minnesota-fraud-scandal-continues-unfold