The Trump administration plans to freeze $10 billion in funding for child care subsidies, social services, and cash support for low-income families in five states controlled by Democrats. This move comes amid claims of widespread fraud throughout those states, though no evidence has been cited to support these claims beyond a major welfare fraud scheme uncovered in one of them.
The affected states—Minnesota, New York, California, Illinois, and Colorado—will lose access to approximately $7 billion in funding for the Temporary Assistance for Needy Families (TANF) program. TANF provides cash assistance to households with children, according to two people familiar with the matter.
In addition to the TANF cuts, the five states will also forfeit nearly $2.4 billion allocated for the Child Care Development Fund, which supports child care for working parents. They will also lose around $870 million in social services grants, which mostly benefit children at risk, the sources said.
This funding pause could jeopardize programs serving hundreds of thousands of low-income households in the affected states.
The planned freeze appears to build on the administration’s recent suspension of $185 million in annual aid to Minnesota day care centers. This action followed investigators’ findings that more than a dozen welfare fraud schemes in Minnesota had resulted in billions of dollars in taxpayer losses.
While no evidence has emerged to suggest that the other four Democratic states experienced similar widespread welfare fraud, Andrew Nixon, a spokesman for the Department of Health and Human Services (HHS)—the agency responsible for disbursing the funds—implied that the Minnesota fraud cases triggered the broader freeze.
“Democrat-led states and governors have been complicit in allowing massive amounts of fraud to occur under their watch,” Nixon said in a statement. “Under the Trump administration, we are ensuring that federal taxpayer dollars are being used for legitimate purposes.”
The funding freeze, initially reported by The New York Post, continues the Trump administration’s pattern of interrupting federal dollars to Democratic-run cities and states. This approach appears to leverage the disbursement of congressionally approved funding to punish perceived enemies and political opponents.
https://crooksandliars.com/2026/01/pyrite-president-targets-programs-five
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