A Minneapolis daycare scrutinized after a viral investigation into alleged misuse of public funds has shut down, as state and federal authorities intensify oversight of Minnesota’s child care programs.
By yourNEWS Media Newsroom
A Minneapolis child care center thrust into public view by a viral investigation into alleged fraud within Minnesota’s child care system has formally closed after surrendering its state license, according to state records.
The Quality Learning Center requested voluntary closure of its license effective Tuesday, state officials confirmed, ending operations weeks after it was highlighted in a widely shared video by independent journalist Nick Shirley. In the video, Shirley toured multiple day care facilities he alleged were collecting public funds without providing corresponding services, with Quality Learning Center emerging as one of the most scrutinized sites.
State licensing records reviewed by CBS News show the Minnesota Department of Children, Youth, and Families acknowledged the provider’s request to close, noting that the facility cannot reopen without reapplying for a license. The closure followed weeks of conflicting signals from operators, who initially told state officials in December they planned to shut down, then later claimed they would remain open.
The center received approximately $1.9 million from Minnesota’s Child Care Assistance Program during fiscal year 2025. A state inspection conducted after the initial closure notice found the operators reversing course, but by early January the facility was again listed as closed.
Shirley’s footage drew particular attention to the center after viewers noticed a misspelled sign reading “Learing,” which was later altered after the video gained traction online. The video showed little visible activity at the site, fueling public concern amid broader scrutiny of Minnesota’s social service programs following multiple large-scale fraud cases.
Federal prosecutors have already charged dozens of individuals in separate cases involving alleged fraud tied to publicly funded programs, including meals for children, autism therapy services, and housing assistance for seniors. Those cases have heightened scrutiny of state oversight practices, particularly after earlier investigations uncovered widespread abuse of pandemic-era aid programs.
The closure comes as the Trump administration has escalated federal involvement in Minnesota. Earlier this week, the Department of Homeland Security deployed approximately 2,000 agents to the Twin Cities, an operation that included DHS Secretary Kristi Noem. The stated focus was addressing fraud and immigration enforcement, though Minnesota Gov. Tim Walz criticized the move as uncoordinated and politically motivated.
Separately, the Department of Health and Human Services announced it would freeze federal child care funding for Minnesota amid ongoing investigations, and later said it planned to halt additional social services funding affecting Minnesota and several other states.
Walz, who recently ended his reelection bid, condemned the federal actions, accusing President Donald Trump’s administration of using fraud investigations to target the state. He said Minnesota was facing an unprecedented level of federal pressure and described the administration’s approach as harmful to residents.
Quality Learning Center’s closure followed a brief attempt to present itself as operational after Shirley’s video gained attention. In the days after the footage circulated, the facility appeared to host a sudden influx of children, while staff and representatives offered explanations that drew skepticism from neighbors and reporters. Nearby residents told reporters they rarely saw children at the site prior to the controversy and questioned whether it had been operating as claimed.
The case is not isolated. Another Minnesota daycare previously suspected of fraud reported an unusual burglary in which thieves allegedly ignored cash and electronics and instead stole enrollment and employee records, according to the facility’s manager.
State and federal officials have said investigations into potential fraud within Minnesota’s child care system remain ongoing, with additional enforcement actions possible as audits and reviews continue.
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