Federal Crackdown Targets Massive Fraud Networks in Minnesota

Key Facts

Published: December 30, 2025 Location: Minneapolis Source: Fox News

• Federal authorities launch a sweeping DHS-led operation across Minnesota to identify, arrest, and remove individuals accused of defrauding taxpayers
• FBI Director Kash Patel calls the $250 million Feeding Our Future scandal “the tip of a very large iceberg,” signaling broader investigations and potential new indictments
• Viral footage of allegedly non-operational childcare centers sparks national scrutiny and political fallout, as state officials defend oversight while conducting surprise inspections

by Emmitt Barry, Worthy News Washington D.C. Bureau Chief

MINNEAPOLIS (Worthy News) – Federal authorities are launching what the Department of Homeland Security described as a “massive operation” in Minnesota aimed at identifying, arresting, and removing criminals accused of defrauding American taxpayers.

In a statement posted Tuesday, the Department of Homeland Security said investigative agents are targeting widespread fraud schemes that have placed the state under growing national scrutiny. The announcement follows a separate DHS operation in Minneapolis after an independent journalist released footage raising questions about allegedly fraudulent daycare and childcare centers.

Videos shared Monday by Kristi Noem showed Homeland Security Investigations agents going door-to-door questioning businesses as part of the probe.

The crackdown comes amid revelations of multiple large-scale fraud cases in Minnesota, including the Feeding Our Future investigation, which uncovered at least $250 million in federal food aid fraud tied to programs meant to feed children during the COVID-19 pandemic. Over the weekend, Kash Patel said the FBI had surged resources into the state, calling the scheme “the tip of a very large iceberg.”

The renewed focus intensified after a viral video by independent journalist Nick Shirley alleged that several Minnesota childcare and learning centers appeared non-operational despite reportedly receiving millions in government funding. The video sparked calls from Republican lawmakers for investigations and criticism of Tim Walz, accusing his administration of failing to adequately oversee taxpayer dollars.

State officials have pushed back on the claims. At a Monday press conference, Minnesota Department of Children, Youth and Families Commissioner Tikki Brown said previous inspections did not uncover fraud but confirmed regulators are conducting additional unannounced visits in response to the allegations.

Minnesota, particularly the Minneapolis area, has become a focal point for federal investigators as authorities warn that more arrests and indictments could follow.

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