WASHINGTON: The U.S. Department of Health and Human Services (HHS) announced on Tuesday that the Trump administration is freezing more than $10 billion in federal funds allocated for childcare and family assistance programs in California, Colorado, Illinois, Minnesota, and New York. The decision affects states governed by Democrats and comes amid allegations of fraud and misuse in these programs.
According to HHS, the freeze impacts three major funding streams: the Child Care and Development Fund ($2.4 billion), Temporary Assistance for Needy Families (TANF) ($7.35 billion), and the Social Services Block Grant ($869 million). Access to these funds will remain restricted pending further review.
Democratic leaders sharply criticized the move. New York Governor Kathy Hochul described the freeze as “vindictive” and “cruel,” stating, “Our children should not be political pawns in disputes between the federal government and blue-state governors.” Illinois Governor J.B. Pritzker echoed the sentiment, calling the action “wrong and cruel.”
California Governor Gavin Newsom’s office defended its programs, highlighting that since taking office, it has blocked over $125 billion in potential fraud. Minnesota has also come under scrutiny recently, with the administration alleging widespread misuse by immigrants in the state’s welfare and social service programs.
Critics argue that the Trump administration is using fraud investigations as a pretext to target political opponents and immigrant communities, particularly highlighting Somali-Americans in Minnesota, including Representative Ilhan Omar, and Democratic Governor Tim Walz.
The HHS has stated that the funding freeze will remain in effect until the review is complete, leaving the states to manage ongoing childcare and family assistance programs under significant uncertainty.