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The Child Development Center of Ohio University's Gladys W. and David H. Patton College of Education, located at The Ridges, Feb. 12, 2026, in Athens.

Childcare fraud concerns spike in Ohio

Concerns of childcare fraud from daycare centers in Minnesota caused a frenzy among Ohio politicians, investigative journalists and influencers in Columbus. 

Nick Shirley, a right-wing influencer, uploaded a video to his YouTube channel, attempting to expose Somali-run childcare centers in Minneapolis, according to The Associated Press. Shirley alleges they were running fake centers to collect federal child care subsidies. 

Columbus is home to the second-largest Somali community, with approximately 60,000 Somalis living there, according to a commentary article from the Ohio Capital Journal. 

Gov. Mike DeWine responded to the Minnesota incident, urging strangers and investigative journalists not to enter childcare facilities. 

“Well, hell no,“ DeWine said in a news conference in January, the AP reported. "No one should let them in."

Jonathan Walsh, investigative reporter for News 5 Cleveland, discussed the proper way investigative reporters should approach investigating claims of fraud. 

“We have so many more eyeballs watching us and critiquing our techniques and our behavior,“ Walsh said. "So we have to do things in what has been a foundational element of investigating reporting, and that’s try to get both sides of the story. Every investigative reporter wants to uncover wrongdoing.”

Walsh discussed how public records are one of the key ways to obtain information, and cross-referencing that information with what is being reported is crucial before constructing any allegations. 

“For example, if I say X daycare charges the state for 50 kids that it supposedly is taking care of, and then you get the records and it shows that X daycare only has a capacity of 30, then you know something is not right,“ Walsh said. "Now, that doesn’t mean an automatic fraud situation. It could be a clerical error. It could be that somebody typed it in wrong. So you have to be really, really careful before you start throwing the word fraud around.”

Heather Thompson, owner of Stages Early Learning Center, said she understands why reporters may want to investigate the potential issue, but she has safety concerns.  

“As a child care center, if somebody were to just randomly show up and want in, we have to make sure that we’re protecting our staff and children at our center,” Thompson said. 

Walsh discussed certain rights parents, children and minors have in issues such as these. 

“There are patient rights, minors' rights, there are parental rights that if you ignore, there's a pretty good chance that you’ll get sued, and nobody wants that," Walsh said. "Our first priority is to get the truth out right, and so that’s why we try to do everything in the correct way. Our second priority is to make sure that everything is correct in our story, because the ultimate defense to any lawsuit is the truth.”

DeWine assures Ohio residents the state has numerous safeguards in place to prevent fraud and exploitation of taxpayers' dollars in the state-funded childcare centers, according to a press release.

Thompson spoke about the state's role in regulating child care benefits. 

“You have families that receive child care benefits through the state of Ohio; each of those families have to apply through their county agency,“ Thompson said. "The county agency then determines their benefits. From that point forward, their benefits are either classified as part-time or full-time."

Children who receive more than 33 hours a week are qualified for full-time enrollment; children who receive 10 to 32 hours qualify for part-time enrollment through the state. 

“So basically the state’s going to pay our center for part-time based on their hours or full-time based on their hours,” Thompson said. “Once they are approved … then they have to be added to our Kinder Connect system, which is state-run.”

Thompson discussed the lengths of security measures the state and the center adhere to, to accurately log attendance as well as ensure the safety of the children. 

The center was provided a separate tablet by the state that has parents enter a phone number, four digit pin and a photo to confirm the right guardian is signing the child in or out. 

“So once they enter their phone number, their four-digit code, take their picture, then it allows them the opportunity to log into attendance,“ Thompson said. "Then they can sign in, and then they have to repeat the whole process when they come in to sign out.”

The dense safeguards and regulations the state has in place leaves little room for deception. However, DeWine urges the public to report any concerns they may have, the press release said. 

“We’re here for the children and the families, and if I’m doing something wrong or if I’m out of compliance with a rule, then give me the technical assistance to make that change so I can continue providing a safe, quality, fun learning environment for these children,” Thompson said.

mm336621@ohio.edu

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