The Department of Health and Human Services (HHS) announced that President Donald Trump’s administration is halting over $10 billion in federal childcare and family assistance funding for California, Colorado, Illinois, Minnesota, and New York, citing alleged concerns about fraud and misuse.
The Trump administration has threatened federal funding cuts to organizations and states over a number of issues since taking office – ranging from alleged fraud in programs in states governed by Democrats to diversity initiatives and pro-Palestinian university protests against U.S. ally Israel’s assault on Gaza.
On Tuesday, HHS said it notified the five states, all with Democratic governors, that its freeze applied to the “Child Care and Development Fund” worth $2.4 billion, the “Temporary Assistance for Needy Families” worth $7.35 billion, and the “Social Services Block Grant” worth $869 million.
In a statement, the department said the states’ access to those funds would be restricted pending further review.
Democratic Governors and Officials Respond
Democrats condemned the plan.
“Our kids should not be political pawns in a fight that Donald Trump seems to have with blue state (Democratic states) governors,” New York Governor Kathy Hochul said, adding the step was “vindictive” and “cruel.” Illinois Governor JB Pritzker also called the step “wrong and cruel.”
California Governor Gavin Newsom’s office said that since taking office, Newsom has blocked over $125 billion in fraud.
Targeting Immigrant Communities
In recent weeks, the Trump administration has singled out Minnesota, alleging rampant fraud is being committed by immigrants in the welfare system and in social service programs.
Trump administration officials have frequently and sharply attacked the state’s Somali community, the largest in the country, as well as Minnesota Governor Tim Walz, the 2024 Democratic vice-presidential nominee, and Democratic Representative Ilhan Omar, a Somali-American who represents a Minneapolis-based district in Congress.
Rights advocates say the Trump administration is using the fraud investigations as an excuse to target immigrants and political opponents more broadly.
(With inputs from Reuters)
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