India, Jan. 1 -- Minnesota's child care system has come under federal scrutiny following allegations of widespread fraud tied to state-funded daycare programs. The developments follow a viral YouTube video posted by independent content creator Nick Shirley, who claimed that several Minnesota daycare centers, many serving immigrant communities, were receiving government funds despite allegedly being non-operational.

The video quickly gained millions of views and drew responses from senior federal officials.

As the video circulated, federal agencies signaled tougher oversight of child care payments, with officials saying the allegations were among factors under review. Providers across the state warned that any disruption in funding could...