House lawmakers on Wednesday questioned independent content creator Nick Shirley about his viral reporting on alleged child care fraud in Minnesota, as Congress intensifies scrutiny of a series of high-profile fraud cases that have shaken the state and drawn national attention.
The House Judiciary Committee hearing examined multiple Minnesota fraud investigations, including the sprawling Feeding Our Future case and newer inquiries involving housing stabilization and federally funded autism programs. Republicans and several witnesses accused state leaders of ignoring years of warning signs, while Democrats focused on the federal government’s response and warned against undermining public trust in social service programs.
Shirley, whose independent investigation in Minnesota made headlines last month, testified about his decision to document what he described as apparent fraud involving child care and early learning centers. In a viral video, Shirley filmed multiple day care facilities that appeared vacant during business hours, alleging that millions of taxpayer dollars were flowing to centers that were not providing services.
“I made this video to document the widespread fraud that has been taking place, as I truly believe that all fraud is bad,” Shirley told lawmakers. “People like me, my generation, are sick of seeing tax dollars go toward fraud. We just want to have the same opportunities our fathers and our grandparents had.”
In response to questioning by Rep. Kevin Kiley (R-CA), Shirley expressed concern that other Democratic strongholds, such as California, could have worse problems on their hands when it comes to fraudulent activity.
“Well, $24 billion are missing for homelessness. They’ve been trying to build this train for years. Yet there’s no proof for that,” Shirley said, referencing the long-delayed high-speed rail project in the Golden State, calling the lack of progress a “major red flag.”
The hearing also featured testimony from Scott Dexter, a former police officer and fraud investigator in Wyoming, Minnesota, who said he observed widespread child care fraud during his tenure. Dexter testified that investigators were later subjected to additional procedural hurdles after being accused of racial bias, including mandatory panel reviews and new oversight databases.
WATCH: Scott Dexter, a former fraud investigator with Minnesota’s Dept of Human Services, explains how the state ignored fraud for years (despite warning signs).
He uncovered overbilling and missing attendance records in the Child Care Assistance Program, much of it… pic.twitter.com/qKbHSbHueq
— Rep. Tom Tiffany (@RepTiffany) January 21, 2026
“The investigative process had become so constrained that meaningful work was no longer possible,” Dexter said, explaining why he retired in 2019.
The hearing later moved on to rounds of questioning surrounding the veracity of Shirley’s reporting.
Dylan Hedtler-Gaudette, director of government affairs at Project on Government Oversight, testified about his review of Shirley’s video after it gained widespread attention. During questioning from Rep. Lucy McBath (D-GA), Hedtler-Gaudette said mainstream journalists and oversight officials had difficulty substantiating some of the claims presented in the footage.
“They had a difficult time substantiating what Mr. Shirley was claiming to be true,” Hedtler-Gaudette said, pointing to reporting by CBS News and information from Minnesota oversight authorities. He cited security footage provided by at least one day care center showing children being dropped off on a day it was portrayed as vacant.
“In my view, I would have to err on the side of believing the professional journalists at CBS and the professional oversight practitioners at the inspector general office,” he said.
The broader hearing revisited the scandal sparked by the Feeding Our Future nonprofit organization, founded in 2016, which prosecutors say falsely claimed to serve meals to thousands of children during the COVID-19 pandemic to receive federal reimbursements. Prosecutors allege roughly $250 million was siphoned off for personal enrichment and overseas transfers. When charges were first announced in 2022, then-Attorney General Merrick Garland called the scheme “an egregious plot to steal public funds meant to care for children in need.”
Lawmakers also heard testimony on the downstream effect of the investigations. Jennifer Larson, CEO of Holland Autism Center, said funding freezes imposed during the Trump administration have harmed legitimate providers alongside fraudulent ones.
“Not because we committed fraud, but because a crime ring was allowed to operate inside Minnesota’s service system,” Larson said. She warned that staffing losses at compliant centers are disrupting care for vulnerable families and urged authorities to return recovered funds to audited providers.
Democrats on the committee criticized the hearing’s focus. Rep. Jamie Raskin (D-MD), the panel’s top Democrat, argued that the Minnesota cases were already under investigation before Republicans elevated them in Congress, while McBath said the debate centered on whether Americans can trust public assistance programs.
WATCH LIVE: NICK SHIRLEY TESTIFIES TO HOUSE ON MINNESOTA FRAUD REPORTING
Several lawmakers at the hearing also referenced similar fraud controversies unfolding in Maine and Arizona, signaling that concerns over oversight and accountability extend beyond Minnesota.
Shirley said he believes the fraud story he covered in Minnesota is just the tip of the iceberg, telling lawmakers it is “correct” to view the state’s experience as indicative of a broader national problem.