Donald Trump has awarded right-wing YouTuber Nick Shirley $10,000 for a viral video alleging fraud in Minnesota’s daycare system and announced a $25 million fraud bounty program, drawing criticism over its implications for immigration policy and federal enforcement.
President Donald Trump on Tuesday awarded $10,000 to right-wing YouTuber Nick Shirley, whose December 2025 video alleging fraud at childcare centers in Minnesota catalyzed a federal crackdown, and unveiled a $25 million Fraud Whistleblower Incentive Program (WHIP) to reward Americans who report fraud. The program, administered by the Justice Department, offers up to $30,000 for tips leading to convictions or significant federal enforcement action,
though Trump later claimed rewards could reach 1% of recovered funds—a figure exceeding the cap.
Shirley’s Video and Federal Response
Shirley’s 42-minute video, which garnered tens of millions of views, alleged that Minnesota daycare centers operated by members of the local Somali community were defrauding taxpayers by not providing services. The clip showed him entering facilities and claiming refusals as evidence of fraud. Federal agents subsequently descended on the Minneapolis area, freezing Minnesota’s federal funding for childcare and intensifying scrutiny. Minnesota state inspectors later found the centers operating normally, but the administration linked the surge of federal agents to the fraud scandal, despite pre-existing investigations into fraud.
The White House defended the program, with spokesperson Lauren Bis stating, This administration has zero tolerance for individuals who steal from Americans.
Trump praised Shirley, saying, What you’ve done, as a young guy, a very young guy, he got it very early, and it’s too bad that you had to ruin your youth to find that such bad people exist.
Shirley, a 24-year-old Utah native, has since testified before the House Judiciary Committee and received the Citizen Journalist of the Year award at Trump’s Mar-a-Lago estate.
Program Details and Controversies
The WHIP, funded with $25 million, allows whistleblowers in some cases to receive 1% of the funds recouped when fraud is proved in court. However, the program’s $30,000 cap contradicts Trump’s statement that if you turn somebody in and … you find $1 billion, we are giving a commission to that person of 1 percent.
This discrepancy underscores debates about the program’s framework, with the White House not promptly explaining how the $10,000 payment to Shirley was determined or how the program is financed initially.
Minnesota’s Somali community has faced increased scrutiny, with Trump repeatedly making racist comments about Minnesota’s Somali population, including a post on Truth Social earlier this month where he said the state is being taken over by Somali Immigrants.
The administration’s rhetoric has drawn accusations of politicizing fraud, as the state braces to officially withdraw up to $259 million in Medicaid payments that it froze earlier this year, alongside federal actions including the killing of two U.S. citizens during a crackdown and resignations from prosecutors investigating the widow of one of the victims.
Legal and Political Implications
The program has drawn scrutiny over its potential to incentivize harassment. Shirley’s methods—unannounced visits and reliance on denied entry as evidence—have been criticized as sensationalism. The Minnesota Star Tribune compiled over $200 million in fraud identified by investigators in the state’s Education Department meal program and various Medicaid services, while investigations into a nonprofit called Feeding Our Future were initiated before Shirley’s video. The state’s governor, dropped out of the state’s gubernatorial race amid increased scrutiny at the start of this year, and California governor Gavin Newsom signed a bill that goes into effect next October dubbed the Stop Nick Shirley Act,
which prohibits individuals and businesses from knowingly publishing or distributing the personal information of people involved in immigration support services—a law Shirley claims violates the First Amendment.
BREAKING: President Trump reveals his new anti-fraud program set up to reward people who expose fraud with a 1% commission on the money uncovered."If you turn somebody in and you, let's say report and you find $1 billion, we are giving a commission to that person of 1%." pic.twitter.com/QUq4GIz31d