Authorities descended on day care and autism centers across the Twin Cities yesterday as they served 22 search warrants in an ongoing fraud crackdown.

Why it matters: These raids have become familiar in Minnesota, which has grappled for years to rein in waste and abuse in social service programs and Medicaid-funded initiatives.

• The scrutiny has already prompted new state-level safeguards, state and federal payment freezes, and even the cancellation of one housing program officials suspected of being actively bilked.

The latest: At least two daycare centers identified in a viral investigation by conservative YouTuber Nick Shirley — Mako Childcare Center and Quality Learning Center — were among those searched, KSTP reported.

• Attorney General Keith Ellison's office said it was involved in five warrants served at autism centers.

Stunning stat: The five autism centers that were raided yesterday received a combined $12.5 million in Medicaid reimbursements since 2021, the Star Tribune reported, citing Department of Human Services data.

Zoom in: Gov. Tim Walz's office said the raids followed reports from two state agencies that "caught irregular behavior."

• "If you commit fraud in Minnesota, you're going to get caught — and that's exactly what we saw today," Walz said in a statement, adding, "Joint investigations work."

Yes, but: FBI Director Kash Patel disputed Walz's statement, writing on X that federal officials "drafted and executed every search warrant today."

• "But go ahead and take credit for our work."

The big picture: Over the last decade, concerns about fraud in state programs have slowly ramped up from a low simmer to a rolling boil — and the political fallout has been massive.

• Shirley's investigation helped focus the Trump administration's attention on the scandal, adding to pressures that contributed to Walz dropping his reelection bid.

Friction point: Fraud concerns were also the genesis of Operation Metro Surge as President Trump targeted the state's East African diaspora.

• The vast majority of the nearly 100 people charged as of December are of Somali descent.
• The scandal has also led Trump to smear the state's Somali immigrants — who number some 80,000 people — as "garbage" who "contribute nothing."

"They're profiling us, and what we (are) experiencing is collective banishing of all of the Somali community," child care center owner Umi Hassan, whose center was not among those raided, told the Star Tribune.

Friction point: A wave of resignations at the Minnesota U.S. Attorney's Office this winter raised questions about its ability to handle new cases.

• Among the attorneys who quit was Joe Thompson, the prosecutor who oversaw the office's fraud investigations.

What we're watching: Whether the searches lead to more charges.

The latest raids add fuel to the political fight over who's to blame — and how to deter future fraud.

State of play: A slate of anti-fraud proposals remain in legislative limbo at the narrowly divided Capitol, with less than three weeks until the adjournment deadline.

Zoom in: One bill to create an independent inspector general is set for another House hearing today.

• Another closely watched proposal that would give agencies more power to cut payments to suspected fraudsters sailed through the tied House but is awaiting action in the DFL-majority Senate.

The intrigue: News of the enforcement actions broke just 12 hours before Walz was set to deliver his final State of the State address.

• Walz used the speech to make the case that his office has "created additional checks and balances" to prevent fraud, as he called on lawmakers to pass additional reforms before the session ends on May 18.

The other side: Top Republicans dismissed the governor's efforts as too little, too late.

• House GOP Leader Harry Niska accused Walz and legislative Democrats of "failing to provide the basic oversight needed to stop fraud," despite "repeated red flags, whistleblower warnings, and explosive growth in program spending."

The bottom line: Expect the finger pointing to continue through the November campaigns, regardless of where lawmakers land on policy fixes.

💲 A bill banning crypto ATM kiosks statewide is awaiting Walz's signature after passing the state Senate yesterday. (Background via Axios)

🏒 The Wild won Game 6 and would eliminate Dallas with a win at home tomorrow night. (NHL.com)

🏁 The Inver Grove Heights City Council decided to fly the old state flag. (KSTP)

• Similar moves by other communities prompted some House Democrats to introduce a long-shot bill to penalize cities and counties that refuse to use the new design.

⚡️Monticello adopted an ordinance to allow massive data centers to be built in the city, with restrictions intended to address residents' concerns. (MPR News)

🎤 Shaboozy, the Grammy-winning country artist behind the earworm "A Bar Song (Tipsy)," makes a stop at the Armory on Oct. 10. (KARE 11)

• In other country concert news, Hardy and McCoy Moore will play the State Fair Grandstand on Sept. 4.

The average price of a gallon of regular gas in the Twin Cities hit $3.98 as of this morning, per AAA.

The big picture: AAA's national average is now $4.23.

• That's the peak since April 2022, after Russia invaded Ukraine.

What to expect: Even if the Iran conflict ends and the Strait of Hormuz reopens fully, don't count on a quick return to pre-war gas prices, Axios' Ben Geman writes.

• Energy Secretary Chris Wright told CNN earlier this month that gas might not drop all the way down to $3 per gallon until next year.

One of the Twin Cities' most beloved British pubs was represented in Washington as King Charles III gave a rare address to Congress yesterday.

The big picture: The speech was part of the royal couple's first U.S. state visit as monarchs, timed to America's 250th.

The #LocalAngle: Shane Higgins, general manager at Brit's Pub in Minneapolis, was U.S. Sen. Amy Klobuchar's guest of honor at the joint address.

What they're saying: "At Brit's, we've always tried to bring a bit of British spirit to Minneapolis, and it's incredible to see that connection celebrated on such a historic stage," Higgins, a dual citizen who was raised north of Manchester, said in a statement.