(The Epoch Times)—Minnesota is facing heavy scrutiny after the Trump administration accused bad actors in the state of exploiting federal funds from child-focused programs for personal gain.
Attorney General Pam Bondi announced on Dec. 29, 2025, that 98 people—85 of Somali descent— were indicted in welfare fraud cases in the state.
Minnesota was home to the “largest COVID-19 fraud case” in America, as 78 defendants—72 of Somalian descent—were accused of pocketing $300 million to $400 million dollars of “Feeding Our Future” funds that were supposed to provide children free meals during the pandemic.
Abdiaziz Shafii Farah, the mastermind behind the “Feeding Our Future” scandal, was sentenced to 28 years in prison in August.
The Trump administration last month announced it would freeze $185 million in federal funds to Minnesota until the scandal-plagued state could prove that the money was being used properly.
Even though federal funds have temporarily dried up in the Land of 10,000 Lakes, prospective child care providers are still able to obtain child care licenses.
The Epoch Times investigated how to open a day care in Minnesota, with a focus on the Twin Cities, Minneapolis and Saint Paul, which have the highest concentration of Somali residents in the United States.
Licensing Applications
The State of Minnesota’s Department of Children, Youth, and Families manages licensing applications for child care centers and charges a nonrefundable fee of $500 to apply. Prospective small business owners can receive a license in approximately three to six months.
Aspiring providers have two routes to obtain a license: open a child care center or provide services at their own home.
An in-home day care license is hundreds of dollars cheaper and requires potential providers to go through their local county for a small fee. Some may even be eligible to receive a grant of $2,000 for startup costs.
Aspiring child care providers seeking licensure in Hennepin and Ramsey counties, which oversee applications in Minneapolis and St. Paul, have to pay a nonrefundable $50 application fee.
Before an application can be submitted, future business owners must first attend an orientation.
Ramsey County requires in-person orientation, which is offered once a month, whileHennepin County allows people to take a 30-minute online orientation and submit their application immediately. Hennepin County’s online orientation can be completed in four separate languages: Somali, Spanish, English and Hmong.
The orientation presentation explains the “many benefits” provided to licensed providers, including food programs, eligibility for loans and grants, and small business tax benefits.At the end of the orientation, the county provides an email address to request the six-page Family Child Care Application Form. The document, which is not available to download, asks a series of questions relating to the applicant, which will be used to help conduct a background check.
Background Check
Hennepin County charges $49.10 for a background check per provider.
The background check form requires applicants to list specific information about their living situation, such as who could be around children under their care, and add references.
The check does a deep dive into a person’s entire criminal record, which includes a juvenile record for people under the age of 28.
Additional checks include where the person has lived in the past five years and if they’ve received government benefits.
Training
Licensed providers must attend several hours of mandatory training before they are granted their license, according to requirements by the Minnesota Department of Children, Youth, and Families.
The mandatory training includes a six-hour course titled “Supervising for Safety for Family Child Care” and a four-hour course on child development and learning and behavior guidance. Other required training includes “Pediatric First Aid & Pediatric Cardiopulmonary Resuscitation,” “Reducing the Risk of Sudden Unexpected Infant Death,” “Reducing the Risk of Abusive Head Trauma,” and “Basic Education for Safe Travel” if transportation will be provided.
The classes are offered by the state and amount to $219 total, although some of the courses are free.
Additional adult caregivers must go through the same training, but people who identify as a “helper” are not required to do so.
Other courses are offered for providers who plan to take care of infants and children under school age.
Processing and Approval
The processing period can take up to half a year, depending on how many applications are going through the system and if an applicant makes mistakes on initial forms.
The Epoch Times contacted Hennepin County for information on how many applications were denied in 2025 and did not hear back by the time this report was published.
Once approved, the licensed provider attends a small group meeting on how to “prepare your home and begin your child care business,” including requirements for space, sleeping, equipment, and safety.
Grants
Minnesota offers training for providers seeking child care assistance funds and lets people apply through the state’s Provider Hub.
A licensed provider in Minnesota has access to the Provider Hub and is eligible to participate in the Child Care Assistance Program (CCAP), which uses federal funds to help low-income families pay for child care.
CCAP, which has 23,000 children enrolled in Minneapolis, uses federal money from the Child Care and Development Fund.
Child care providers apply for smaller grants, provided by the state, using the Child Care Aware Grants Program, which gives up to $1,000 for family child care and $2,500 to centers.
Applications for regional grants open once a year, but “soon-to-be licensed” providers can also apply for startup grants of up to $2,000 for family child care and $3,000 for child care centers.
Funding Freeze
Due to widespread fraud allegations in Minnesota, not all grants are available.
The Trump administration announced on Dec. 30, 2025, that it was freezing child care funding in all 50 states after Minnesota day care centers run by Somali residents became the epicenter of alleged fraud scandals.
The freeze impacts the Child Care and Development Fund, Temporary Assistance for Needy Families, the Head Start program, and refugee assistance programs.
In 2025, the federal government provided nearly $2.4 billion to the Child Care and Development Fund, $7.35 billion to Temporary Assistance for Needy Families, and $869 million the Social Services Block Grant.
Minnesota received 7.7 percent ($184.9 million) of the money allocated to the Child Care and Development fund in 2025, according to data provided by the Office of the Administration for Children and Families.
The state received 3.5 percent ($262 million) of the funds from Temporary Assistance for Needy Families in 2025, according to the state’s budget.
“Funds will be released only when states prove they are being spent legitimately,” Health and Human Services (HHS) Deputy Secretary Jim O’Neill said during the announcement.
Controversies
Minnesota and its Somali population has received heavy criticism after allegations of widespread fraud surfaced in the state.
YouTuber Nick Shirley went viral after posting a video which featured a series of Somali-run day cares, seemingly empty, despite receiving federal funding.
The Epoch Times confirmed that Quality Learning Center, which was featured in Shirley’s video, closed shortly after a viral video showed its sign misspelled Learning as “Learing.”
The scandals led Minnesota Gov. Tim Walz to drop out of his bid for reelection on Jan. 5, even though he blamed the alleged fraud on “an organized group of criminals,” as opposed to the state’s oversight.
“Every minute I spend defending my own political interest would be a minute I can’t spend defending the people of Minnesota against the criminals who prey on our generosity and the cynics who prey on our differences,” Walz wrote in his announcement that ended his bid for a third term as governor.
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