MxM News

The Small Business Administration is moving to freeze grant money flowing into Minnesota after explosive allegations of large-scale fraud tied to state oversight failures, with SBA Administrator Kelly Loeffler signaling an immediate crackdown following recent independent reporting.

In a series of comments shared publicly by conservative commentator Benny Johnson, Loeffler said the agency is “cutting off and clawing back” SBA grants to the state while investigators dig deeper into what she described as a rapidly expanding fraud network.

Johnson wrote that Loeffler told him she was “disgusted and sickened” after reviewing footage from YouTuber Nick Shirley, whose on-the-ground reporting in Minnesota highlighted what he said were sham daycare and learning centers collecting millions in public funds despite showing little or no sign of legitimate operations.

According to Johnson, Loeffler blamed the situation on Democrat Gov. Tim Walz, accusing his administration of refusing to enforce basic rules governing small businesses and allowing fraud to flourish unchecked.

Johnson said Loeffler told him SBA investigators were able to identify roughly half a billion dollars in suspected fraud within days of focusing on Minnesota, calling the operation an “industrial-scale crime ring” that ripped off American taxpayers.

“Pending further review, SBA is freezing all grant funding to the state in order to stop the rampant waste of taxpayer dollars and uncover the full depth of fraud,” Loeffler said, according to Johnson’s account, adding that the total scope of the scheme remains unknown and could reach into the billions.

The controversy gained national traction after Shirley posted video of himself visiting multiple facilities, including a South Minneapolis site known as the Quality Learning Center, which he reported was approved for federal aid for up to 99 children but appeared inactive during normal business hours.

The center’s sign, Shirley noted, even misspelled the word “learning” as “learing.”

In the footage, a woman inside the building is heard shouting “Don’t open up,” falsely claiming Shirley and his colleague were Immigration and Customs Enforcement agents.

After the video circulated, Rep. Tom Emmer, a Republican, publicly demanded answers from Walz, questioning how such facilities were approved for millions in taxpayer funding.

Shirley’s reporting followed earlier investigations, including a November report by City Journal alleging that members of Minnesota’s Somali community had sent millions of dollars in stolen taxpayer funds overseas, with some of that money reportedly ending up in the hands of Al-Shabaab, a U.S.-designated terrorist organization.

While Walz’s administration has insisted it takes fraud seriously, the SBA’s decision to halt grant funding marks one of the most aggressive federal responses yet, underscoring how rapidly a local scandal has escalated into a national reckoning over oversight, enforcement, and accountability in Minnesota.

From StosselTV

Countries all over the world are imposing digital IDs. They tie your identity to everything you do. Spain’s Prime Minister wants “An end to anonymity online!”

Tech privacy expert Naomi Brockwell ‪@NaomiBrockwellTV‬ warns that’s dangerous. “Privacy is not about hiding,” she tells Stossel TV producer Kristin Tokarev. “It’s about an individual’s right to decide for themselves who gets access to their data. A Digital ID… will strip individuals of that choice.”

The new government mandated digital IDs aren’t just a digital version of your driver’s license or passport. “It connects everything,” Brockwell explains. “Your financial decisions, to your social media posts, your likes, the things that you’re watching, places that you’re going… Everything you say will be tied back to who you are.”

And once everything runs through a single government ID, access to services becomes something you need permission for. That’s already a reality in China where citizens are tracked, scored, and punished for “bad” behavior.

Brockwell warns the western world is “skyrocketing in that direction.” She says Americans need to push back now.

———

To make sure you receive the weekly video from Stossel TV, sign up here: https://www.johnstossel.com/#subscrib...

———