The video, titled "The Thug Cycle," was published on the the Omaha Police Officers Association's website after someone found it on Facebook.
Child Victim Unit police were able to identify the toddler and track down the two adults in the video's background, who can be heard encouraging the small boy to shout obscenities and raise his middle finger to the camera.
An investigation into the home determined that, while no criminal activity had taken place in the video, the toddler and three other children were in an unsafe environment.
The video has since sparked a debate over whether publicizing this kind of shocking and vulgar content is racist or valuable to breaking a cycle of inner-city violence.
It calls attention to "a cycle of violence and thuggery, young children find themselves trapped in," he said.
The names of the adults and child have not been released.
Warning: The video below contains strong language.