Billion-dollar daycare fraud in US: Is it happening in Canada?

2026 January

For decades since 1990s ‘welfare reform’, governments have poured billions into daycare ‘spaces’ with little accountability, and hidden and lied about persistent low enrolment and high vacancy rates.

For example, the Auditor General of Canada’s October 2025 report on over $35 billion federal spending on daycare repeatedly and implausibly claims it ‘lacked information’ and had massive ‘data gaps‘ and that ‘Employment and Social Development Canada was more than 4 years behind on reporting to the public‘ see: 2025 Report of the Auditor General of Canada to the Parliament of Canada—Federal funding has supported improvements in early learning and child care across Canada

For example, Directors at UBC and SFU daycare make well over $100,000/year. 

For example, in BC, attendance records are kept but the government does not required that operators submit them. Only ‘enrolment’ data is submitted. Who checks? 

The opportunity for fraud is massive.

BC daycare laws focus on addressing fraud and repayment of fraudulently obtained funds – why?

BC Early Learning and Child Care Act – see Early Learning and Child Care Act

Part 3 — Administration and Enforcement 
Division 1 — Information Collection
Information and verification

Division 2 — Recovery of Financial Supports
Overpayments

US daycare mega-fraud

Nick Shirley – video – I Investigated Minnesota’s Billion Dollar Fraud Scandal

Young youtuber uncovers massive fraud in US daycare centres receiving millions for scam daycare centres

PBD Podcast – video interview of Nick Shirley – Who Is @Nick Shirley? | PBD Podcast | 710

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