Trump freezes over $10 billion in childcare, family assistance funds to five US states
- Last updated: January 7, 2026 | 15:24 ..
US President Donald Trump's administration is freezing more than $10 billion in federal childcare and family assistance funds to California, Colorado, Illinois, Minnesota and New York, the Department of Health and Human Services (HHS) said, citing what it called concerns about fraud and misuse.
The Trump administration has threatened federal funding cuts to organizations and states over a number of issues since taking office – ranging from alleged fraud in programmes in states governed by Democrats to diversity initiatives and pro-Palestinian university protests against US ally Israel's assault on Gaza.
On Tuesday, HHS said it notified the five states, all with Democratic governors, that its freeze applied to the "Child Care and Development Fund" worth $2.4 billion, the "Temporary Assistance for Needy Families" worth $7.35 billion, and the "Social Services Block Grant" worth $869 million.
In a statement, the department said the states' access to those funds would be restricted pending further review.
Democrats condemned the plan.
"Our kids should not be political pawns in a fight that Donald Trump seems to have with blue state (Democratic states) governors," New York Governor Kathy Hochul said, adding the step was "vindictive" and "cruel." Illinois Governor JB Pritzker also called the step "wrong and cruel."
California Governor Gavin Newsom's office said that since taking office, Newsom has blocked over $125 billion in fraud.
In recent weeks, the Trump administration has singled out Minnesota, alleging rampant fraud is being committed by immigrants in the welfare system and in social service programmes.
Trump administration officials have frequently and sharply attacked the state's Somali community, the largest in the country, as well as Minnesota Governor Tim Walz, the 2024 Democratic vice presidential nominee, and Democratic Representative Ilhan Omar, a Somali-American who represents a Minneapolis-based district in Congress.
Rights advocates say the Trump administration is using the fraud investigations as an excuse to target immigrants and political opponents more broadly.
Reuters