Trump-led SBA freezes $5.5M in Minnesota grants after Nick Shirley’s fraud expose

YouTuber Nick Shirley claimed that several Minnesota daycare centers were receiving large amounts of government money despite not being in operation
Nick Shirley, a YouTuber, recently uncovered potential misuse of Minnesota daycare funding, which has drawn political attention toward Governor Tim Walz (Getty Images)
Nick Shirley, a YouTuber, recently uncovered potential misuse of Minnesota daycare funding, which has drawn political attention toward Governor Tim Walz (Getty Images)


WASHINGTON, DC: The Donald Trump-led Small Business Administration (SBA) has suspended $5.5 million in grants following alleged fraud uncovered by Nick Shirley.

The YouTuber, known for his street interviews, uncovered potential misuse of Minnesota daycare funding, which has drawn political attention toward Governor Tim Walz.

Kelly Loeffler, SBA Administrator, announced that the government is freezing all the funds previously granted. The situation has also sparked concerns about oversight and potential national security implications.

SUPERIOR, WISCONSIN - JANUARY 25: Minnesota Governor Tim Walz speaks about funding for the I-535 Blatnik Bridge before a visit by U.S. President Joe Biden at Earth Rider Brewery on January 25, 2024 in Superior, Wisconsin. Biden touched on his economic agenda and recent federal funding for infrastructure projects. (Photo by Stephen Maturen/Getty Images)
Minnesota Governor Tim Walz speaks about funding for the I-535 Blatnik Bridge before a visit by former President Joe Biden at Earth Rider Brewery on January 25, 2024, in Superior, Wisconsin (Stephen Maturen/Getty Images)

SBA freezes grant funding to Minnesota to stop 'rampant waste of taxpayer dollars'

"The scope of this international scam is still unknown, likely in the billions. Pending further review, SBA is freezing all grant funding to the state in order to stop the rampant waste of taxpayer dollars and uncover the full depth of fraud," SBA Administrator Kelly Loeffler told Benny Johnson

In a letter to Governor Walz, the SBA announced it would pause the release of federal funds. "As Administrator of the US Small Business Administration (SBA), I am notifying you that effective immediately and until further notice, the SBA is halting the disbursement of federal funds to SBA resource partners operating in the state of Minnesota, totaling over $5.5 million in annual support," said Loeffler.

SBA is immediately suspending and reclaiming all federal grants in Minnesota (@kttc/X)
SBA is immediately suspending and reclaiming all federal grants in Minnesota (@kttc/X)

"This action is the result of a fundamental breakdown in the public trust," Loeffler added. "Under your leadership, Minnesota failed to safeguard taxpayer dollars, and SBA will not continue to place federal resources at risk in a state where oversight measures are ignored and accountability is abandoned."

Nick Shirley exposes alleged misuse of government funds in Minnesota daycare programs

YouTuber Nick Shirley gained attention after posting a video titled “I Investigated Minnesota’s Billion Dollar Fraud Scandal.” Presenting himself as an independent journalist, Shirley claimed that several Minnesota daycare centers were receiving large amounts of government money despite not being in operation.

In the footage, Shirley visits one of the daycares and speaks with a local resident to understand whether the center was truly functioning as reported. Highlighting what he described as extensive fraud across the state.

Shirley said, “This is one of the hundreds of ‘daycares’ receiving millions of dollars from the government. This daycare (that can’t even spell learning right) received $1,900,000 in tax-exempt funding from CCAP.”



He suggested that this example is just a small part of a larger pattern of fraudulent organizations in Minnesota. Shirley also criticized public officials for failing to act, targeting Walz specifically, he claimed the governor “knew about the fraud but never reported it.”

GET BREAKING U.S. NEWS & POLITICAL UPDATES
STRAIGHT TO YOUR INBOX.

MORE STORIES

US Secretary of State Marco Rubio issued a stark warning after clashes near Hormuz following US retaliatory strikes on Iranian targets
4 hours ago
The CDC has already deployed epidemiologists and medical teams to assist with the evacuation and assess possible exposure risks among passengers and crew
5 hours ago
Patel’s move appeared to come in response to a report by Sarah Fitzpatrick in The Atlantic last month, which highlighted concerns among his employees about his drinking habits
5 hours ago
The emotional video featured moments from Erika and Charlie Kirk’s engagement, wedding, and family life
5 hours ago
The chilling account was included in a larger release of 162 UFO-related FBI files spanning nearly eight decades
5 hours ago
Howell expressed her resentment over Maxwell's transfer to a facility intended for 'non-violent offenders'
7 hours ago
The witness accounts were included in an internal FBI memo dated Oct. 19, 1966, with the subject line 'Unidentified Flying Objects', which was released to the public on Friday, May 09
8 hours ago
The defense team, in a 200-page-long filing, argued the impact of biased coverage, citing a previous stance where lip-reading was attempted to decode the conversation between Robinson and his lawyer
10 hours ago
The details were among documents released by the Pentagon relating to unidentified anomalous phenomena, previously and more infamously known as unidentified flying objects, or UFOs
10 hours ago
The gold vermeil necklace features a pendant shaped like three connected hearts that resemble either a flower or a three-leaf clover
1 day ago