The Trump administration has frozen roughly $10 billion in federal funding for social services and child care programs in five Democratic-led states, citing concerns about potential fraud.
The funding pause affects California, Colorado, Illinois, Minnesota, and New York.
Trump cuts off $10B in funding to five blue states for child care, social services over fraud fears https://t.co/3dwEPnweQ8 pic.twitter.com/CygN7KHGV1
— New York Post (@nypost) January 5, 2026
The Department of Health and Human Services said it is withholding more than $7 billion from the Temporary Assistance for Needy Families program, over $2 billion from the Child Care and Development Fund, and nearly $900 million from the Social Services Block Grant.
An HHS spokesperson said the move is aimed at protecting taxpayer dollars and ensuring states comply with federal law.
The administration has not publicly released evidence of widespread fraud in four of the five states.
Trump just froze $10 BILLION in welfare & childcare funds to deep-blue states like California, Illinois, Minnesota, Colorado, and New York.pic.twitter.com/uPriRFzmsI
— OMNIS (@project_omnis) January 5, 2026
The action follows a separate funding freeze in Minnesota tied to an ongoing federal investigation into alleged misuse of child care funds. Federal authorities have increased enforcement activity there, with investigations continuing.
Democratic officials criticized the move as politically motivated, while the administration defended it as a necessary step to prevent abuse.
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TIPP Staff
