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

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.

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.

"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.”