Federal authorities stepped up their crackdown Monday as ICE and DHS agents went door-to-door across Minneapolis, targeting locations tied to a sweeping fraud investigation that has rocked Minnesota’s social services system.
Video released by the Department of Homeland Security shows agents questioning individuals at multiple sites as part of what officials describe as an expanding federal probe.
Agents move door-to-door
DHS-confirmed footage posted on X captures two agents entering Nicollet Tobacco & Vape in Burnsville, roughly 17 miles south of Minneapolis. Inside, they questioned a woman behind the counter about activity at a nearby closed building, asking whether people had been coming and going.
The American people demand answers and accountability. DHS, under @Sec_Noem, will deliver on them.
Our agents are conducting a massive operation to identify, arrest, and remove criminals who are defrauding the American people at daycares, healthcare facilities, and other… pic.twitter.com/DvA62Sjl1J
— Homeland Security (@DHSgov) December 29, 2025
The woman said she was not working the previous day and could not provide further information. DHS captioned the footage: “DHS is on the ground in Minneapolis, going DOOR TO DOOR at suspected fraud sites.”
Billion-dollar fraud at the center
The door-to-door operations are linked to a massive fraud case involving fake daycare centers and healthcare facilities accused of billing state and federal programs for services that were never delivered. Investigators estimate that as much as $9 billion may have been improperly claimed.
Authorities say the scheme involved newly created businesses and nonprofits that sought reimbursements for housing, food, and healthcare aid without providing legitimate services. Dozens of arrests have already been made.
Federal officials share on-the-ground footage
Homeland Security Secretary Kristi Noem released her own video showing the same agents questioning a man outside a business about subcontractors and transportation partners. His responses appeared unclear and non-specific.
DHS officials stated that Homeland Security Investigations and ICE are conducting a large-scale investigation into fraudulent daycare and healthcare operations across Minneapolis.
Search warrants and continued enforcement
According to DHS, federal agents executed a search warrant on December 18 at a Somali-owned home care agency. Additional video footage circulating online shows agents visiting multiple childcare locations connected to the investigation.
Officials said the focus remains on identifying those involved in fraud, uncovering accomplices, and determining whether undocumented immigrants played a role in exploiting taxpayer-funded programs.
Minneapolis under sustained federal scrutiny
Authorities emphasized that the door-to-door strategy is not random but aimed at gathering direct information on ownership, staffing, and daily operations at suspected fraud sites.
DHS officials said misuse of social services funds diverted aid from families who legitimately needed assistance. Residents across Minneapolis reported seeing increased federal presence, with officials signaling that further enforcement actions and arrests are expected.
