The funding freeze could hit families who rely on child care and basic assistance, coming as California faces a budget crunch and a projected deficit.
SACRAMENTO, Calif. — The Trump administration announced it is freezing $10 billion meant for social services and child care, funding that supports low-income families, with California among the states affected.
Federal officials have claimed the freeze is tied to fraud concerns, but so far have not provided evidence. The action affects five Democratic-led states: California, Colorado, Illinois, Minnesota and New York.
More than $7 billion of the frozen money is tied to the Temporary Assistance for Needy Families program. Another $2 billion funds child care subsidies, and nearly $900 million comes from the Social Services Block Grant.
The funding freeze could hit families who rely on child care and basic assistance, coming as California faces a budget crunch and a projected deficit.
California Assembly Speaker Robert Rivas criticized the move, saying Trump has no right to steal from hard-working residents and that the state will continue to fight back.
Gov. Gavin Newsom echoed that message in an interview with MS Now.
“Bring it on,” said Newsom. “If he has some unique insight and information, I look forward to partnering with him. I can’t stand fraud. I can’t stand waste and abuse.”
The announcement comes as Newsom prepares to unveil a balanced state budget Friday, even as California faces a projected deficit.
Chris Micheli, an adjunct professor at McGeorge School of Law, said the first response could be legal action.
“The first effort is potentially the lawsuit that we would anticipate Attorney General Bonta to file,” Micheli said.
Micheli said California has to fight the freeze because it cannot simply replace lost federal funding.
“We just don’t have the state revenues to do so,” he said.
Micheli said California has sued the Trump administration about 52 times over the past year. He said health and human services now make up the largest category in California’s budget, surpassing education, and warned that losing federal dollars would have serious consequences.
“If we lose those federal dollars, it will be a significant budget impact to the state of California,” he said.
ABC10 reached out to organizations that serve families who could be impacted. Child Action Inc. said nothing has changed so far. Their full statement:
“We are aware that the federal government has announced a freeze related to child care funding. However, the State of California has not issued any formal notification or guidance, and there has been no change to Child Action’s funding or operations at this time. Services and payments continue as normal.
For nearly 50 years, Child Action has been a trusted pillar in the Sacramento community, supporting nearly 40,000 children, families, and child care providers each year. Any disruption to child care funding would have a direct and immediate impact on our most vulnerable families and the providers who serve them.”
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