Trump administration freezes child care funds in five Democratic-led states, citing fraud allegations without public evidence
The Trump administration has announced the holding of $10 billion in federal funds allocated to programs that provide financial support to low-income children and families in five states governed by Democrats: California, Colorado, Illinois, Minnesota, and New York. The Department of Health and Human Services (HHS) will require these states to provide additional documentation to access the money, alleging that there has been “fraudulent” handling of the social assistance.
“Families who rely on child care and family assistance programs deserve confidence that these resources are used lawfully and for their intended purpose,” said Jim O’Neill, deputy secretary of HHS, in a statement. In the same document, the agency expressed “concern that these benefits, intended for U.S. citizens and legal residents, may have been improperly provided to individuals who are not eligible under federal law.”
The suspended programs provide vital assistance to low-income families. The Child Care and Development Fund subsidizes childcare for low-income households, enabling parents to work or study. Temporary Family Assistance provides financial support and job training so that parents in poverty can buy diapers and clothing and earn a wage, while the Global Grant for Social Services supports other family assistance services.
The response from the Democratic officials in question was swift. New York Governor Kathy Hochul stated that they would take the case to court. “We’ll fight this with every fiber of our being, because our kids should not be political pawns in a fight that Donald Trump seems to have with blue state governors,” she declared.
New York Mayor Zohran Mamdani’s chief spokesperson, Dora Pekec, also condemned the measure. “New Yorkers should be outraged by this blatant cruelty. We will work with our state partners to fight this attempt to play politics with our kids’ futures.” In New York City alone, the grant benefits more than 75,000 children each year.
The office of Colorado Governor Jared Polis also criticized Washington’s decision. “These resources support families in need and help them access food and much more. It would be terrible to see the federal government harming the most vulnerable families and children in this way,” the office stated.
The Trump administration has not released any information regarding the alleged irregularities that may have occurred in the handling of these funds, but the president has already announced that a “fraud investigation” has begun in California. Governor Gavin Newsom’s spokesperson defended the state’s record in combating fraud in government programs in The Guardian.
For months, federal authorities have claimed that programs funded by Washington are being defrauded. This has been the primary argument for suspending funding. In Minnesota, aid has been halted since the end of December 2025 due to an investigation into alleged fraud at daycare centers run by people of Somali origin.
It all began with the release of a video by YouTuber Nick Shirley (who has created content against immigrants and Muslims in the past), in which he claimed to have found empty or abandoned childcare centers in Minnesota that receive federal funding. The Minnesota Department of Children, Youth and Families issued a statement asserting that of the four childcare centers mentioned, only one was closed at the time of the inspection, and warned that “unverified or misleading claims can interfere with investigations, create safety risks for families, providers, and employers, and contribute to harmful rhetoric about Minnesota’s immigrant communities.” The FBI and the Department of Homeland Security are leading the investigation.
The scandal even reached the state’s governor and Kamala Harris’s former running mate, Tim Walz, who announced he would not seek re-election under a barrage of criticism from Republicans, including Trump, about his “responsibility” in the case.
The government also made accusations of fraud related to the Supplemental Nutrition Assistance Program (SNAP), which costs taxpayers $100 billion and benefits 42 million people. The White House has demanded that states hand over data on beneficiaries, including Social Security numbers, dates of birth, and immigration status, or else it will suspend assistance. Republican-led states have complied with the request, but Democrats have argued in court that releasing this information would violate citizens’ privacy.
The Department of Agriculture reported that, based on the data they received, they found 186,000 deceased individuals receiving benefits, and another 500,000 people collecting food stamps in more than one jurisdiction. The department has not yet made the report public.
