The Trump administration is moving to freeze more than $10 billion in federal child care and social services funding to five Democrat-led states amid concerns taxpayer dollars were improperly diverted to non-citizens, according to a report.
Officials reportedly told The New York Post that the Department of Health and Human Services (HHS) will freeze funding from the Child Care Development Fund (CCDF), the Temporary Assistance for Needy Families (TANF) program, and the Social Services Block Grant, affecting California, Colorado, Illinois, Minnesota, and New York over concerns the benefits were fraudulently funneled to non-citizens.
More than $7.3 billion in TANF funding would be withheld from the five states, along with nearly $2.4 billion from the CCDF and another $869 million from the Social Services Block Grant.
The funding pauses were expected to be announced in letters sent to state officials Monday, citing concerns that benefits were improperly directed to non-U.S. citizens.
ABBOTT ORDERS COMPREHENSIVE FRAUD PROBE INTO TEXAS CHILD CARE FUNDING AFTER MINNESOTA SCANDAL
A 2019 audit by the Department of Health and Human Services Office of Inspector General found that New York State improperly claimed $24.7 million in federal reimbursement for child care subsidies paid to New York City that did not comply with program rules.
The audit attributed the overbilling to system errors and oversight failures – not criminal fraud – and state officials agreed to refund the funds and implement corrective controls, according to the report.
Following the release of details surrounding the potential funding freeze, New York Democrats sharply criticized the Trump administration’s move, arguing it would harm families who rely on child care assistance.
Sen. Kirsten Gillibrand, D-N.Y., accused the administration of using the issue for political retaliation and warned it would hurt children and low-income families across the state.
“Trump is threatening to freeze child care funding in New York and targeting our children for political retribution. It’s immoral and indefensible,” she wrote in a post on X. “I’m demanding the administration abandon any plans to freeze this funding and stop hurting New York families.”
Along with her post, Gillibrand also shared a public statement regarding the freezing of funds.
HHS CUTS OFF MINNESOTA CHILD CARE PAYMENTS OVER ALLEGED DAYCARE FRAUD SCHEME
“My faith guides my life and public service. It’s our job to serve the people most in need and most at risk – no matter what state they live in or what political party their family or elected representatives belong to,” she said. “To use the power of the government to harm the neediest Americans is immoral and indefensible.
“This has nothing to do with fraud and everything to do with political retribution that punishes poor children in need of assistance,” Gillibrand added. “I demand that President Trump unfreeze this funding and stop this brazen attack on our children.”
The NY Post first reported that in December, HHS sent letters to Walz and Minneapolis Mayor Jacob Frey seeking information on whether billions in taxpayer funds may have unlawfully helped “fuel illegal and mass migration.”
Those requests were followed by investigations launched by the Treasury Department and the House Oversight Committee into a growing fraud scandal involving several nonprofits tied to the Somali community in the Twin Cities.
An estimated 130,000 illegal migrants were living in Minnesota as of 2023 — about 40,000 more than in 2019 and roughly 2% of the state’s population — according to the Pew Research Center. The state’s Somali diaspora exceeds 100,000 people, with most concentrated in the Minneapolis–St. Paul area.
The news on Monday came the same day Minnesota Gov. Tim Walz announced he was dropping his bid for a third term as governor amid stinging criticism of his handling of the state’s massive welfare assistance fraud scandal.
KAROLINE LEAVITT WARNS ‘PEOPLE WILL BE IN HANDCUFFS’ AS FEDS ZERO IN ON MINNESOTA FRAUD SCANDAL
Walz launched his bid for a third four-year term as Minnesota governor in September, but in recent weeks has been facing a barrage of incoming political fire from President Donald Trump and Republicans, and some Democrats, over the large-scale theft in a state that has long prided itself on good governance.
More than 90 people — most from Minnesota’s large Somali community — have been charged since 2022 in what has been described as the nation’s largest COVID-era scheme.
How much money has been stolen through alleged money laundering operations involving fraudulent meal and housing programs, daycare centers and Medicaid services is still being tabulated. But the U.S. attorney in Minnesota said the scope of the fraud could exceed $1 billion and rise to as high as $9 billion.
MINNESOTA FRAUD SCANDAL INTENSIFIES DEBATE OVER STRIPPING CITIZENSHIP
Prosecutors said that some of the dozens that have already pleaded guilty in the case used the money to buy luxury cars, real estate, jewelry and international vacations, with some of the funds also sent overseas and potentially into the hands of Islamic terrorists.
Trump addressed Walz’s announcement of leaving the race on Monday, in a post on Truth Social. “Minnesota’s Corrupt Governor will possibly leave office before his Term is up but, in any event, will not be running again because he was caught, REDHANDED, along with Ilhan Omar, and others of his Somali friends, stealing Tens of Billions of Taxpayer Dollars,” the president wrote. “I feel certain the facts will come out, and they will reveal a seriously unscrupulous, and rich, group of ‘SLIMEBALLS.’
“Governor Walz has destroyed the State of Minnesota, but others, like Governor Gavin Newscum, JB Pritzker, and Kathy Hochul, have done, in my opinion, an even more dishonest and incompetent job,” Trump added. “NO ONE IS ABOVE THE LAW!”
Fox News Digital’s Paul Steinhauser and Andrew Mark Miller contributed to this report.
Federal officials to halt more than $10B in funding to 5 states over non-citizen benefit concerns: report 2026 IUSTITIA.BG – Investigations 2009-2025 2026-01-06 01:59:50 Latest news World news Country news Most important news latest news most important latest of the day Justice Petar Nizamov Feathers Petar Nizamov- Feathers Justice bg iustitia.bg iustitia iusticia usticia investigation Burgas Bulgaria news news of the last hour news of the day news of today Bulgaria news The news from Bulgaria blitz news top news most important most commented latest news Boyko Borisov news weather coronavirus news news weather facebook youtube facebook instagram news today news of the last minutes news today today news news bg news leading news hot news bg news site for news all news news bg news of the last hour latest latest news bg news of today news today news today news of the last hour latest news today news bg news news 24 hours news vesti bg novini news world bird bg bivol bg bivol trud bg novini latest news today novinite bg news hello bulgaria political party coat of arms delyan peevski scandalous Bulgarian National Television Free Europe Television scandal exclusive live tv live right now tv tv online tv program bg live now tv news online tv online live court Burgas court Burgas district court Burgas court Burgas district court Burgas district court Burgas appellate court Burgas prosecutor Burgas prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Prosecutor General Ivan Geshev Prosecutor Geshev Tsatsarov Ministry of Internal Affairs Burgas ODMR Burgas ODPR Burgas police Burgas district police Burgas prosecutor Tsatsarov SGS cases Varna court chairman of the SGS court decisions on civil cases decisions on cases Plovdiv court decision of the court decisions cases Varna court criminal cases district district court decisions work in the court SGS chairman of the SGS judges Sofia court post judges Plovdiv court Plovdiv judges Plovdiv Supreme Court Inspectorate Supreme Court Supreme Judicial Council lawyer lawyer criminal cases lawyer civil cases lawyer marriage cases lawyer administrative criminal law criminal process civil law civil process administrative law constitutional law
