Trump administration halts little one care funds to five Democrat-led states: report

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The Trump administration is transferring to freeze greater than $10 billion in federal little one care and social companies funding to 5 Democrat-led states amid considerations taxpayer {dollars} have been improperly diverted to non-citizens, in keeping with a report.

Officers reportedly advised The New York Post that the Division of Well being and Human Providers (HHS) will freeze funding from the Youngster Care Growth Fund (CCDF), the Non permanent Help for Needy Households (TANF) program, and the Social Providers Block Grant, affecting California, Colorado, Illinois, Minnesota, and New York over considerations the advantages have been fraudulently funneled to non-citizens.

Greater than $7.3 billion in TANF funding can be withheld from the 5 states, together with practically $2.4 billion from the CCDF and one other $869 million from the Social Providers Block Grant.

The funding pauses have been anticipated to be introduced in letters despatched to state officers Monday, citing considerations that advantages have been improperly directed to non-U.S. residents.

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The Division of Well being and Human Providers (HHS) will freeze funding from the Youngster Care Growth Fund (CCDF), the Non permanent Help for Needy Households (TANF) program, and the Social Providers Block Grant, affecting California, Colorado, Illinois, Minnesota, and New York over considerations the advantages have been fraudulently funneled to non-citizens, in keeping with a report. (Kayla Bartkowski/Getty Photos)

A 2019 audit by the Division of Well being and Human Providers Workplace of Inspector Basic discovered that New York State improperly claimed $24.7 million in federal reimbursement for little one care subsidies paid to New York City that didn't adjust to program guidelines.

The audit attributed the overbilling to system errors and oversight failures – not legal fraud – and state officers agreed to refund the funds and implement corrective controls, in keeping with the report.

Following the discharge of particulars surrounding the potential funding freeze, New York Democrats sharply criticized the Trump administration’s transfer, arguing it might hurt households who depend on little one care help.

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Sen. Kirsten Gillibrand , D-N.Y., accused the administration of utilizing the problem for political retaliation and warned it might harm kids and low-income households throughout the state.

" Trump is threatening to freeze little one care funding in New York and focusing on our kids for political retribution. It’s immoral and indefensible," she wrote in a publish on X. "I’m demanding the administration abandon any plans to freeze this funding and cease hurting New York households."

Alongside together with her publish, Gillibrand additionally shared a public assertion concerning the freezing of funds.

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Sen. Kirsten Gillibrand, D-N.Y., spoke out after the Trump administration moved on Jan. 5, 2026, to freeze billions in federal little one care and social companies funding to a number of blue states. (Getty Photos)

"My religion guides my life and public service. It’s our job to serve the individuals most in want and most in danger – it doesn't matter what state they reside in or what political social gathering their household or elected representatives belong to," she stated. "To make use of the ability of the federal government to hurt the neediest People is immoral and indefensible.

"This has nothing to do with fraud and every part to do with political retribution that punishes poor kids in want of help," Gillibrand added. "I demand that President Trump unfreeze this funding and cease this brazen assault on our kids."

The NY Submit first reported that in December, HHS despatched letters to Walz and Minneapolis Mayor Jacob Frey looking for info on whether or not billions in taxpayer funds could have unlawfully helped "gasoline unlawful and mass migration."

These requests have been adopted by investigations launched by the Treasury Division and the Home Oversight Committee right into a rising fraud scandal involving a number of nonprofits tied to the Somali group within the Twin Cities.

An estimated 130,000 unlawful migrants have been dwelling in Minnesota as of 2023 — about 40,000 greater than in 2019 and roughly 2% of the state’s inhabitants — in keeping with the Pew Research Center . The state’s Somali diaspora exceeds 100,000 individuals, with most concentrated within the Minneapolis–St. Paul space.

The information on Monday got here the identical day Minnesota Gov. Tim Walz introduced he was dropping his bid for a 3rd time period as governor amid stinging criticism of his dealing with of the state’s huge welfare help fraud scandal.

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GOP lawmakers in Minnesota are calling for Gov. Tim Walz to resign over the exploding fraud disaster. (Getty Photos)

Walz launched his bid for a 3rd four-year time period as Minnesota governor in September, however in latest weeks has been dealing with a barrage of incoming political fireplace from President Donald Trump and Republicans, and a few Democrats, over the large-scale theft in a state that has lengthy prided itself on good governance.

Greater than 90 individuals — most from Minnesota's massive Somali group — have been charged since 2022 in what has been described because the nation's largest COVID-era scheme .

How a lot cash has been stolen by alleged cash laundering operations involving fraudulent meal and housing applications, daycare facilities and Medicaid companies remains to be being tabulated. However the U.S. lawyer in Minnesota stated the scope of the fraud might exceed $1 billion and rise to as high as $9 billion.

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High quality Studying Heart in Minnesota was discovered on the heart of an alleged childcare fraud scandal within the state. (Madelin Fuerste / Fox Information Channel)

Prosecutors stated that a few of the dozens which have already pleaded responsible within the case used the cash to purchase luxurious automobiles, actual property, jewellery and worldwide holidays, with a few of the funds additionally despatched abroad and doubtlessly into the arms of Islamic terrorists.

Trump addressed Walz’s announcement of leaving the race on Monday, in a publish on Reality Social. "Minnesota’s Corrupt Governor will presumably depart workplace earlier than his Time period is up however, in any occasion, is not going to be working once more as a result of he was caught, REDHANDED, together with Ilhan Omar , and others of his Somali pals, stealing Tens of Billions of Taxpayer {Dollars}," the president wrote. "I really feel sure the details will come out, and they're going to reveal a significantly unscrupulous, and wealthy, group of ‘SLIMEBALLS.’

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"Governor Walz has destroyed the State of Minnesota, however others, like Governor Gavin Newscum, JB Pritzker, and Kathy Hochul , have carried out, in my view, an much more dishonest and incompetent job," Trump added. "NO ONE IS ABOVE THE LAW!"