A Minnesota Democrat who operates a daycare center that received more than $7 million in government childcare payments has won a seat in the state legislature, drawing renewed attention to his business’s relationship with a nonprofit that recently agreed to an $18.5 million fraud settlement.
Abdi Daisane, the CEO of Blooming Kids Child Care Center in St. Cloud, defeated Republican Mike Conway in Minnesota House District 14A during the November 3 elections.
The result has brought fresh scrutiny to how Minnesota distributes and monitors public funds intended to support low-income families and provide meals for children.
According to election returns reported after all 18 precincts completed their counts, Daisane received 9,163 votes, compared with Conway’s 8,570. His margin of victory was 593 votes.
The Democrat’s business history has become a subject of public examination because Blooming Kids received substantial taxpayer-funded payments while participating in programs overseen by Minnesota state agencies.
Records reviewed by Alpha News show the childcare center received approximately $7.29 million through the state’s Child Care Assistance Program beginning in 2018.
That program helps eligible families pay for childcare services while parents work, attend school, or participate in approved activities.
The size of the payments attracted attention after reporters examined the center’s financial and licensing records.
According to the reporting, Blooming Kids received approximately $439,000 through the assistance program in 2021.
The amount increased to approximately $1.54 million in 2024 and $1.52 million in 2025.
Those figures raise questions about how state officials document childcare attendance, verify payment claims, and ensure participating centers comply with program requirements.
A separate set of records showed that Blooming Kids received approximately $598,252 in approved reimbursements through the federally funded Child and Adult Care Food Program beginning in 2020.
The meal program is designed to provide nutritional assistance to eligible children and other qualifying participants through participating childcare facilities.
For part of that period, Blooming Kids operated under the sponsorship of Partners in Nutrition, a Minnesota nonprofit responsible for administering and monitoring meal reimbursements.
That relationship is significant because Partners in Nutrition became the subject of a major civil fraud investigation.
On September 24, Minnesota Attorney General Keith Ellison announced that the nonprofit had agreed to an $18.5 million settlement resolving allegations involving false claims for federal child nutrition funds.
The attorney general’s office alleged that Partners in Nutrition knowingly submitted reimbursement claims for meals that had not been served.
According to the state, the misconduct occurred during and after the COVID-19 pandemic and involved weaknesses in the oversight of participating meal-service locations.
The settlement required the nonprofit to surrender $18,517,909.27, cooperate with continuing investigations, and permanently dissolve.
The recovered funds are to be returned through the Minnesota Department of Education to the federal government.
The settlement also permits investigators to continue examining the conduct of individuals, site operators, and vendors associated with the nonprofit.
However, Blooming Kids and Daisane were not named as defendants in the settlement. The available reporting does not establish that either submitted fraudulent claims or participated in the nonprofit’s misconduct.
The documented connection is that the daycare previously participated in the nutrition program under the nonprofit’s sponsorship.
That distinction is important because the settlement establishes allegations resolved against Partners in Nutrition, not a finding that every childcare provider affiliated with it committed fraud.
Nevertheless, the relationship has brought attention to the records underlying Blooming Kids’ public payments.
State oversight also became an issue after reporters examined the center’s childcare licensing history.
Alpha News reported that the facility had accumulated 16 licensing violations across three inspections since July 2024.
The cited issues reportedly involved staff supervision, training, employee background-study requirements, and other childcare operating standards.
The facility was also assessed a $400 fine involving background-study compliance.
Licensing citations are separate from allegations of financial fraud, but they provide additional information about whether a publicly funded childcare provider is complying with state requirements.
Questions have also been raised about the facility’s apparent activity.
Alpha News interviewed a person who worked near Blooming Kids and said they could not recall seeing children entering or leaving the center.
That individual also acknowledged that the facility had an entrance that was not visible from their location.
Consequently, the observation does not establish that the daycare lacked enrolled children or that childcare services were not provided.
A Fox News visit to the facility on November 5 described a quiet property with relatively few vehicles present.
A short observation at one location cannot independently establish average attendance or whether claims submitted to state agencies were accurate.
The most reliable way to resolve those questions would be through enrollment records, attendance documentation, reimbursement claims, and official inspection findings.
Daisane did not respond to the requests for comment described in the reports.
His election has intensified interest in those records because he will now participate in the legislative process governing Minnesota’s public programs.
The broader issue concerns financial accountability in government assistance systems.
Minnesota has already experienced major fraud investigations involving federally funded nutrition programs, including the separate Feeding Our Future case.
The Partners in Nutrition settlement demonstrates that state authorities identified serious problems involving the administration of federal meal reimbursements.
Its dissolution and the recovery of $18.5 million represent significant consequences for the organization.
But recovering taxpayer funds after misconduct has occurred is only one part of financial oversight.
