Trump administration suspends $10 billion in funding for social services in five Democratic states
Washington — The Trump administration is considering cutting off billions of dollars in federal funding for social services programs in five Democratic-led states following allegations of fraud, a Department of Health and Human Services official said Tuesday.
The move will freeze $7 billion for the Temporary Assistance for Needy Families program, nearly $2.4 billion for the Child Care Development Fund and about $870 million for social service grants that largely benefit children. The states affected are Minnesota, New York, California, Illinois and Colorado.
The New York Post was the first to report that HHS would deny funding.
“For too long, Democratic-led states and governors have been complicit in allowing massive amounts of fraud to occur on their watch,” Andrew Nixon, an HHS spokesperson, said in a statement. “Under the Trump Administration, we are ensuring that federal taxpayer dollars are used for legitimate purposes. We will ensure these states follow the law and protect taxpayers’ hard-earned dollars.”
The Illinois Department of Human Services said it has not yet received any notification or communication regarding impacts to its federal funding.
“This is another politically motivated action by the Trump administration that is causing confusion for families and leaving states with more questions than answers. IDHS will provide an update if informed of program or funding changes,” the agency said in a statement.
The Trump administration’s decision comes after HHS announced last week that it frozen federal funding for child care for Minnesota due to “blatant fraud” in public assistance programs.
More than 90 people face federal charges stemming from Fraud Schemes Uncovered in Minnesota since 2021. Prosecutors estimate that the total amount of the fraud could reach $9 billion. The scandal began with a $250 million COVID-era scheme involving a nonprofit called Feeding Our Future, accused of stealing from the federal child nutrition program.
Federal prosecutors have since uncovered “large-scale fraud” in a housing program for the elderly and disabled, as well as a program providing services to autistic children. The Trump administration is also investigating allegations of child care fraud in Minnesota, which gained national attention after a conservative YouTube personality named Nick Shirley posted a video showing him visiting federally supported child care centers around Minneapolis and finding no children there.
CBS News visited several centers appointed by Shirley and found that all but two of the facilities have active licenses, according to state records, and that all active locations have been visited by state regulators in the past six months.
President Trump criticized Minnesota leaders for their handling of the scandal and attacked Somali immigrants, saying they had “ripped off” the state. Most, but not all, of the defendants charged in these fraud schemes are of Somali descent.
Mr. Trump attacked California, led by Democratic Governor Gavin Newsom, as “more corrupt” than Minnesota. He said in a Truth Social article Tuesday that “the investigation into California fraud has begun.” The president has provided no evidence of large-scale fraud in California’s social services and has not provided further details about an investigation involving the state.
Beyond Minnesota, the Trump administration has also failed to present evidence of extensive social services fraud schemes in New York, Illinois and Colorado.
Yet in recent months, the Trump administration has turned off the spigot of funding to Democratic-led states and cities, particularly during last year’s historic government shutdown. Mr. Trump on pause billions of dollars For infrastructure and climate projects, and reduced grants for disaster preparedness.
Democrats have accused the administration of playing politics with money approved by Congress.
