The administration of former US President Donald Trump has moved to restrict access to more than $10 billion in crucial federal funding for childcare and family assistance programmes in five American states. The Department of Health and Human Services (HHS) announced the freeze, which it says is pending a further review of alleged fraud and misuse.
Funds Frozen Amid Fraud Allegations
In a significant move, HHS notified the states of California, Colorado, Illinois, Minnesota, and New York that their access to three major funding streams would be restricted. The affected programmes are the Child Care and Development Fund ($2.4bn), the Temporary Assistance for Needy Families ($7.35bn), and the Social Services Block Grant ($869m). All five states have Democratic governors.
Andrew Nixon, a spokesperson for HHS, justified the action in a statement, claiming, "For too long, Democrat-led states and Governors have been complicit in allowing massive amounts of fraud to occur under their watch." The administration has yet to provide detailed evidence to support these broad fraud claims or outline a clear plan for the widening withholding of funds, a policy first reported by the New York Post.
Democratic Leaders Condemn 'Vindictive' Move
The decision has been met with fierce condemnation from Democratic politicians, who accuse the Trump administration of using vital social services as a political weapon. New York Governor Kathy Hochul stated, "Our states should not be political pawns in a fight that Donald Trump seems to have with blue state governors," labelling the step as "vindictive" and "cruel".
In California, a spokesperson for Governor Gavin Newsom launched a strong rebuke, calling Trump "a deranged, habitual liar whose relationship with reality ended years ago," while defending the state's record on combating fraud. Senator Kirsten Gillibrand of New York argued the funding halt was designed to score political points rather than address genuine fraud concerns.
Focus on Minnesota and Broader Implications
The administration has recently singled out Minnesota, alleging rampant fraud within welfare and social service programmes, particularly implicating immigrants. Officials have frequently attacked the state's large Somali community, Governor Tim Walz, and Democratic Representative Ilhan Omar. Federal childcare funding in Minnesota has been on hold since late last month amid investigations into alleged fraud schemes at daycare centres run by individuals with Somali heritage.
In the fallout, HHS officials stated that no state would receive childcare funds without providing additional verification, though several states told the Associated Press they had received no guidance on this new requirement. Rights advocates argue the Trump administration is using fraud investigations as a pretext to target immigrants and political opponents more broadly.
While Trump himself has not commented on the specific fund freeze, he proclaimed on social media, "The Fraud Investigation of California has begun." This action continues a pattern of the administration threatening federal funding cuts over various issues, from diversity initiatives to responses to pro-Palestinian protests.
