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Trump administration says it’s withholding social safety net money from 5 states over fraud concerns

The Trump administration froze $10 billion in aid to five Democratic-led states citing fraud concerns despite limited evidence beyond Minnesota's case, impacting programs aiding nearly 1 million families.

  • On Tuesday, the Trump administration said it is withholding roughly $10 billion in federal social services and child-care funds from California, Colorado, Illinois, Minnesota and New York, the Department of Health and Human Services confirmed.
  • Following fraud probes in Minnesota that began after a viral allegation, the freeze builds on a Minnesota scandal involving alleged fraud at day-care centers that prompted earlier pauses in federal child-care funding.
  • HHS detailed the funding categories affected, noting $2.4 billion from the Child Care and Development Fund, $7.35 billion from Temporary Assistance for Needy Families, and $869 million from the Social Services Block Grant.
  • Immediate effects include advocates warning the freeze will disrupt aid for low-income families with children and strain child-care providers, while state governors including New York Governor Kathy Hochul prepare legal challenges.
  • Critics argue the freeze targets the five states as political retribution and lacks evidence beyond Minnesota, while HHS says verification could take months.
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President Donald Trump's administration froze access to more than $10 billion in federal aid for child care and family care programs in five Democratic-ruled states, after detecting serious concerns about fraud and misuse of public funds, mainly in Minnesota.Read more]]>

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ReutersReuters
+7 Reposted by 7 other sources
Center

Trump freezes over $10 billion in childcare, family assistance funds to 5 US states

·United Kingdom
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KOB 4KOB 4
+20 Reposted by 20 other sources
Center

Trump administration funding threats set child care providers and parents on edge

Even with two incomes, Charity Pallum said she and her husband would not be able to afford child care for their 1-year-old twins. But because of federal child care subsidies, both Pallum, a teacher, and her husband, who works at a car dealership, are able to work full-time. Now, the Trump administration is increasing the reporting burdens for states to access the money. If Pallum’s family were to lose that support, her husband might have to stop…

·Albuquerque, United States
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InsideNoVA.comInsideNoVA.com
+17 Reposted by 17 other sources
Center

Feds freeze $10B in aid to Colorado, four other states

(The Center Square) – The Trump administration froze certain federal funding to Colorado this week amid growing national concerns about fraud in government-funded programs.

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The New Republic broke the news in on Monday, January 5, 2026.
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