Minnesota: Federal agencies raid Minneapolis and St. Paul businesses as part of fraud investigation

Federal agents from the FBI and the Department of Homeland Security Investigations (HSI) executed at least 22 search warrants Tuesday at businesses in the Twin Cities area, in Minneapolis and St. Paul, primarily child care centers and Medicaid service providers, as part of an ongoing investigation into alleged federal program fraud.

Unlike Operation Metro Surge conducted a few months ago, these raids did not focus on immigration enforcement, but allegedly targeted businesses with ties to the Somali community in the area.

According to a statement from the Department of Justice (DOJ), "Today the FBI with federal, state and local law enforcement is involved in court-authorized law enforcement activity as part of an ongoing fraud investigation."

The New York Post (NYP) reported that the targets included Quality Learning Center, a Minneapolis day care center known for misspelling the word "Learning" on its sign. The center, which closed in January after a viral scandal, received approximately $1.9 million from the Child Care Assistance Program (CCAP) in 2025.

Federal probes intensify in Minnesota

Some of the entities reportedly under investigation may have links to the Somali community, which has previously come under scrutiny for alleged fraud in social welfare programs.

Minnesota has been at the center of several large-scale fraud scandals in recent years, especially related to federal funds awarded during the COVID-19 pandemic. The best-known case is the Feeding Our Future scheme in which more than $250 million in food aid for children was allegedly defrauded, leading to dozens of indictments and convictions.

In a press release issued in early April, the DOJ announced that two additional defendants had pleaded guilty in the mentioned fraud scheme, explicitly stating: "The number of defendants convicted in the Feeding Our Future scheme has now reached 65."

Separately, since September, the DOJ has filed indictments against seven people accused of participating in a scheme that allegedly recruited members of the Somali community to enroll minors in supposed autism services that did not actually exist, which generated profits of $14 million. The NYP reported that one of those involved has already pleaded guilty.

In previous months, viral videos and public denunciations, such as those by independent journalist Nick Shirley, put under the spotlight child care centers that allegedly billed for services they did not provide. The scandal even reached Congress and contributed to Governor Tim Walz's decision not to seek re-election.

The Trump administration estimates the fraud in Minnesota alone amounts to $19 billion, with dozens of people criminally charged.