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News Link • Education: Government Schools

The Public School Shell Game Makes Phantom Daycares Look Tiny

• https://thedailyeconomy.org, Corey A. DeAngelis

In a stunning development, Minnesota Governor Tim Walz dropped out of the 2026 gubernatorial race after his state was exposed for massive fraud in taxpayer-funded childcare programs. The Trump administration has halted federal childcare funding nationwide while it investigates the scope of fraud.  

Independent journalists like Nick Shirley have been exposing what looks like a massive scam in taxpayer-funded childcare programs. Shirley and his team visited addresses listed as childcare centers in Minnesota — places supposedly serving vulnerable kids — and found empty lots, abandoned buildings, or no sign of any children being cared for.  

Some of these operations have raked in hundreds of millions of dollars in government subsidies over just a few years, even though state databases show they're only licensed for a handful of kids, if any at all. It's the kind of story that makes your blood boil: hard-earned tax dollars vanishing into thin air, funneled away from those who might really need it. 

And it isn't limited to Minnesota. Internet sleuths and investigators have uncovered similar patterns in states like Washington, where childcare centers — many tied to Somali communities, as in Minnesota — have been accused of the same shady practices. What's more, many of these centers have donated thousands to politicians, raising serious questions about where the public's money is going. The whole thing reeks of corruption. Federal agents are now probing nationwide fraud in these programs. 

But as outrageous as this daycare scam is, it's small potatoes compared to the massive, ongoing fraud perpetrated by teachers' unions every single year, in every state, right under our noses. These unions advocate to pour billions of taxpayer dollars into public schools, only to funnel a huge chunk back out — and into Democratic politics. It's a closed-loop racket that's been running for decades.

While there are key differences — the daycare fraud often involves phantom centers with no children at all and a shocking lack of state oversight, whereas public schools do have students they consistently fail to educate — the underlying incentive structure is frustratingly similar. In both cases, taxpayer dollars are poured into failing or fraudulent public initiatives, with little accountability, perpetuated by political alliances that prioritize funding over results.

In the 2024 election cycle, a staggering 99.89 percent of the campaign contributions from the American Federation of Teachers (AFT) went to Democrats. This isn't a fluke — it's been that way for over three decades, with the union acting as a reliable cash machine for one party. Similarly, 98.24 percent of contributions from the National Education Association (NEA) flowed to Democrats in the same cycle. 

And that's just the tip of the iceberg. The latest publicly available LM-2 report for the NEA reveals it spent more than $39 million on political activities and lobbying alone. Yet only about nine percent of their total budget went toward actually representing teachers — their supposed core mission. Keep in mind, that's just one national union; it doesn't include the political spending by hundreds of local affiliates across the country. For instance, the Chicago Teachers Union (CTU) has failed to produce its required audits for five years in a row now, and a congressional committee is formally investigating the CTU for violating union bylaws and federal transparency laws. 

Zano