The Trump administration is planning to pull billions of dollars in federal funding from social services programs in five Democratic-led states, according to multiple reports.
The states affected would include California, Colorado, Illinois, Minnesota and New York, according to the New York Post, which first reported the plan and was later confirmed by Scripps News.
The proposed funding freeze includes about $7 billion for the Temporary Assistance for Needy Families program and more than $2 billion for the Child Care Development Fund. Nearly $1 billion from the Social Services Block Grant program would also be affected.
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The move comes as the administration says it's investigating allegations of fraud tied to some social services programs.
"For too long, Democrat-led states and Governors have been complicit in allowing massive amounts of fraud to occur under their watch," said HHS spokesperson Andrew Nixon. "Under the Trump Administration, we are ensuring that federal taxpayer dollars are being used for legitimate purposes. We will ensure these states are following the law and protecting hard-earned taxpayer money."
In December, Deputy Secretary of Health and Human Services Jim O’Neill said on X that the department froze child care payments to Minnesota over claims that funds were being diverted to what he described as “fraudulent day care centers.”
O’Neill said he demanded that Minnesota Gov. Tim Walz audit the centers and provide attendance records, licensing information, and details related to complaints, inspections and investigations.
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Walz has said repeated attacks from the Trump administration were among the reasons he decided not to seek reelection.
“Every minute that I spend defending my own political interest would be a minute I can’t spend defending the people of Minnesota against the criminals who prey on our generosity and the cynics who want to prey on our differences," Walz said.
