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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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291 Articles

Lean Left

The Trump Administration announced the retention of $10 billion in funds allocated to federal programs that provide financial support to low-income children and families in five Democratic states: California, Colorado, Illinois, Minnesota, and New York. The Department of Health and Human Services (HHS) will require these territories to provide additional documentation to access money, because, they claim, “fraud” management of social assistance …

·Spain
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Right

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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InsideNoVA.comInsideNoVA.com
+25 Reposted by 25 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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