Reports of widespread fraud in Minnesota’s taxpayer-funded programs are headed straight into the congressional spotlight next week, with lawmakers preparing to hear from a former fraud investigator and the YouTuber whose videos ignited a national reckoning.
The House Judiciary Subcommittee on Crime and Federal Government Surveillance will hold a hearing Wednesday, Jan. 21, titled “When Public Funds Are Abused: Addressing Fraud and the Theft of Taxpayer Dollars.”
Rep. Andy Biggs, R-Ariz., will chair the session that will be streamed live on YouTube and X.
Nick Shirley’s viral work takes the witness table
One of the featured witnesses is Nick Shirley, whose viral videos documenting empty day cares, autism centers, and transportation companies have pulled hundreds of millions of views and pushed Minnesota’s fraud crisis onto the national stage.
On Wednesday, Shirley released his highly anticipated second video, this time focused on school and government transportation companies — and it has already racked up millions of views.
His first video — now well past 140 million views on X— raised alarms about alleged Medicaid waste at facilities that billed taxpayers millions of dollars while appearing vacant during business hours.
Those findings echo more than a year of Alpha News reporting, which has uncovered similar patterns across autism therapy clinics, adult daycare programs and transportation companies.
Biggs: ‘Stop the fraud’
Biggs told Alpha News that the objective of the upcoming judiciary hearing could not be more clear, saying: “It is our goal to find out what is going on, criminally prosecute who should be prosecuted, and just stop the fraud.”
He said the public deserves confidence that taxpayer money reaches the people the programs are built to serve — not opportunists skimming from the edges.
“When these programs exist, whether it’s in Minnesota or anywhere else, the resources go to whom the program was designed to receive those resources.”
Shirley will testify alongside Jennifer Larson, CEO of Minnesota-based Holland Autism, and Scott Dexter, a former Minnesota police officer and DHS fraud investigator.
Biggs said Larson is expected to show what ethical care actually looks like when funding isn’t diverted.
“We’re bringing a CEO of an autism clinic in who’s going to talk about what happens when fraud occurs and diverts resources away from actual beneficiaries, and those who should be assisted.”
Dexter, meanwhile, brings a street-level view.
“We’re bringing an investigator specializing in financial fraud and child care fraud. These are areas that we’re seeing in Minnesota.”
Funding paused
Minnesota’s ballooning bill — billions across several programs over just a few years — triggered federal funding freezes that Biggs said stem directly from Minnesota’s stonewalling.
“The reason that they paused funding is because we’re not getting the necessary clarity from the state officials,” he said. “You don’t want to keep putting good money into something bad.”
Biggs said federal agencies — including the Department of Justice (DOJ) — are already engaged.
“They’ve sent people in to try to clear this up and get a handle on this … There will be investigations that will lead to prosecutions.”
Message to Minnesotans: Hold your leaders accountable
Biggs didn’t mince words about where responsibility ultimately falls — not just in Washington:
“Be cognizant of who it was of your elected officials who continued the conduct that allowed this. I mean, this is something that there needs to be accountability for,” he stated. “Ultimately it’s each state and the people in each state.”
Biggs added that Minnesotans should not lose hope.
“If we work together on both sides of it, hopefully we clean it up and it benefits all of us as Americans.”
He added that the estimated scale of the fraud took place “literally over many programs, $9 billion worth of fraud,” and said it suggests “incentives that are not wholesome and not honest.”
As for a timeline, Biggs said Congress can investigate and push the DOJ — but some fixes require Minnesotans to decide what comes next.
“I can’t give you a time. I wish I could,” Biggs stated. Until then, he’s promising transparency and pressure.
“We hope that we can clear it up.” Read More
