Trump Administration Freezes $10 Billion in Childcare and Family Aid to Five Democratic-Led States

The U.S. Department of Health and Human Services (HHS) has frozen more than $10 billion in federal childcare and family assistance funds to California, Colorado, Illinois, Minnesota, and New York, citing concerns over alleged fraud and misuse. The freeze affects key programs including the $2.4 billion Child Care and Development Fund, the $7.35 billion Temporary Assistance for Needy Families program, and the $869 million Social Services Block Grant. HHS said access to the funds will remain restricted pending further review.

The move marks the latest in a series of funding threats and cuts by the Trump administration toward Democratic-governed states and organizations, often tied to disputes over fraud allegations, diversity initiatives, or campus protests related to the Israel-Gaza conflict. In recent weeks, the administration has particularly singled out Minnesota, alleging widespread welfare fraud linked to immigrant communities, while sharply criticizing state leaders including Governor Tim Walz and Representative Ilhan Omar.

Democratic governors condemned the funding freeze, calling it harmful and politically motivated. New York Governor Kathy Hochul said children should not be used as “political pawns,” while Illinois Governor JB Pritzker described the decision as “wrong and cruel.” California Governor Gavin Newsom’s office countered that his administration has already blocked more than $125 billion in fraud. Rights advocates accused the administration of using fraud investigations as a pretext to target immigrants and political opponents.

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