SAN DIEGO - Following a viral investigation that sparked a federal funding freeze in Minnesota, YouTuber Nick Shirley is now in California to probe allegations of "ghost" day care centers.
Shirley’s arrival comes as Republican lawmakers in the state suggest that similar patterns of suspicious billing and inactive facilities may be draining California's taxpayer-funded child care subsidies.
What we know:
Shirley, 23, arrived in California over the weekend, announcing his presence to his one million followers on X.
"Hello California I’ve arrived," he posted, wearing a "Support Independent Journalism" hoodie.
Shirley recently gained national attention for a video alleging widespread fraud in Somali-run daycares in Minnesota.
While those specific claims remain under investigation and have been disputed by state regulators, the Trump administration responded by freezing federal childcare funds in five states, including California.
On January 6, 2026, the Department of Health and Human Services (HHS) officially restricted access to over $10 billion in funding across these states, citing "serious concerns about widespread fraud."
Local perspective:
Video posted on social media showed Shirley questioning a woman at an alleged day care center in San Diego.
In the video, which has since been viewed more than 1.3 million times, the woman recording can be heard shouting, "It's Nick Shirley in our state guys! Look!"
Shirley responds, "It says there's 14 children enrolled here."
"You don't care, this is my day care!" she replies.
Then where are the children?" Shirley inquires.
"You don't care! It's not enough Minnesota you come here? It's not enough?" she said.
What we don't know:
It's unclear which day care centers Shirley is investigating in San Diego.
The factual basis of Shirley's specific claims remains unverified by state regulators.
It is currently unknown if Shirley has filed formal complaints with California’s Department of Social Services or the Office of the Inspector General.
The backstory:
Shirley gained national attention in late 2025 after posting a video claiming nearly a dozen Somali-run day care centers in Minneapolis were collecting public funds without serving children.
Shirley’s reporting in Minnesota helped bring national scrutiny to the alleged misuse of taxpayer dollars, though Minnesota officials have disputed aspects of the fraud claims, saying previous inspections of childcare centers did not uncover widespread wrongdoing.
Big picture view:
During a House Judiciary Committee hearing where he testified alongside Rep. Kevin Kiley (R-CA) last week, Shirley shared his thoughts on alleged fraud in California.
"Have you gotten any sense, or have you seen any signs that there that are sort of similar to what aroused your suspicions in Minnesota?" Kiley asked Shirley.
"Yeah and fraud in California might be worse than fraud in Minnesota," Shirley said.
When asked to elaborate, Shirley said that $24 billion went missing for homelessness.
"Twenty-four billion in homelessness, and yet the homelessness population went up, and a state audit found out that they couldn’t even figure out where the money went or what the outcomes linked to that spending were," Kiley said in response.
What they're saying:
"Fraud will be exposed in California. It'll be exposed all across the United States, because we're learning that there's so much fraud that's taking place," Shirley said during an interview on "The Ingraham Angle."
"Whether it be through daycares or these projects like that high-speed light rail that Newsom's been trying to build for years," he added.
Critics have accused Gov. Gavin Newsom and the state of California of allowing fraud to prosper under a lack of oversight.
First Assistant U.S. Attorney for the Central District of California Bill Essayli launched a task force in April to investigate corruption in the state, with a focus on programs for the homeless.
"California has spent $24 billion in the last five years on homelessness, and no one can account for where that money has really gone," Essayli said on "Fox & Friends" in January.
What's next:
State officials in California are expected to address the federal funding freeze in the coming days as the administration demands more proof that funds are reaching actual students.
Shirley is expected to release his first full-length California "sting" video later this week, which local law enforcement warns could lead to further confrontations at home-based day care sites.
The Source: This report is based on video testimony from the House Judiciary Committee, official statements from the Minnesota Department of Children, Youth, and Families, and recent reporting from the Associated Press. FOX News contributed.