Tim Walz Scrambles With Damage Control After Viral ‘Ghost’ Daycare Video

A video documenting seemingly inactive childcare centers in Minnesota has sparked national controversy. The footage showed locked buildings with “day care” signs but little evidence of children, raising questions about how taxpayer funds were being distributed and monitored.

Independent creator Nick Shirley published the 42-minute video in December 2025, visiting nearly a dozen licensed centers in Minneapolis. Some locations appeared vacant during daytime hours, and one facility’s sign famously misspelled “Quality Learing Center.” Shirley claimed the center received $1.9 million through the state’s Child Care Assistance Program (CCAP) despite apparent inactivity.

The video quickly went viral, amplified by social media and conservative figures, including Elon Musk, who called for prosecutions. Supporters argued it revealed systemic abuse and insufficient oversight, while critics cautioned that visual evidence alone does not prove fraud.

State officials responded cautiously. The Minnesota Department of Children, Youth, and Families (DCYF) confirmed inspections had found no immediate evidence of fraud but continued detailed reviews. Governor Tim Walz emphasized ongoing fraud prevention measures and previous oversight efforts.

Federal authorities escalated scrutiny. The U.S. Department of Health and Human Services froze federal CCAP funds until Minnesota could verify legitimate use and launched nationwide reporting requirements for childcare funding. DHS and FBI investigations were also intensified in the state.

Investigations have found a more nuanced picture. Most facilities highlighted in the video were active, licensed, and regularly inspected, though minor violations like cleanliness issues were noted. Media outlets caution that viral visuals can exaggerate public perception compared with formal oversight findings.

Political fallout has been sharp. Republican leaders pushed for unannounced inspections and transparency, while critics warned against targeting specific communities, particularly Minnesota’s Somali providers, noting risks of harassment and profiling.

The controversy underscores a broader issue of public trust in government programs. As Minnesota navigates audits, potential prosecutions, and legislative scrutiny, the outcome may influence expectations for accountability, oversight, and transparency in public programs nationwide.