{"id":90514,"date":"2026-01-06T00:05:13","date_gmt":"2026-01-06T00:05:13","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ny\/90514\/"},"modified":"2026-01-06T00:05:13","modified_gmt":"2026-01-06T00:05:13","slug":"exclusive-trump-freezes-10b-in-funding-to-five-blue-states-for-child-care-social-services-over-fraud-fears","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ny\/90514\/","title":{"rendered":"Exclusive | Trump freezes $10B in funding to five blue states for child care, social services over fraud fears"},"content":{"rendered":"<p>WASHINGTON \u2014 The Trump administration is cutting off more than $10 billion in social services and child care funding meant for a handful of Democrat-led states over concerns that the benefits were fraudulently funneled to non-citizens, officials told The Post Monday.<\/p>\n<p>The Department of Health and Human Services will freeze taxpayer funding from the Child Care Development Fund (CCDF), the Temporary Assistance for Needy Families (TANF) program, and the Social Services Block Grant program.<\/p>\n<p>The Trump administration is cutting off more than $10 billion in social services and child care funding meant for a handful of Democrat-led states, officials told The Post Monday. Getty Images<\/p>\n<p>Minnesota has been at the center of allegations that child care programs are perpetrating fraud after a viral video from YouTuber Nick Shirley alleged nearly a dozen day cares had no kids attending. X \/ Nick Shirley<\/p>\n<p>At least $7.35 billion in TANF money will be prevented from going to California, Colorado, Illinois, Minnesota, and New York.<\/p>\n<p>The CCDF funding block of nearly $2.4 billion affects all those states.<\/p>\n<p>Another $869 million from the Social Services Block Grant coffers is being kept from all five states as well.<\/p>\n<p>The funding pauses were to be announced via letters to each state sent Monday, citing concerns that benefits were fraudulently going to non-US citizens.<\/p>\n<p>The HHS Office of Inspector General\u00a0<a href=\"https:\/\/www.oversight.gov\/sites\/default\/files\/documents\/reports\/2019-10\/21702010.pdf\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">found<\/a>\u00a0more than six years ago that New York City improperly billed the federal government for more than $24.7 million in child care subsidies.<\/p>\n<p>Sen. Kirsten Gillibrand (D-NY) blasted the Trump administration\u2019s decision to pull back funds.<\/p>\n<p>\u201cTo use the power of the government to harm the neediest Americans is immoral and indefensible,\u201d Gillibrand said in a statement. \u201cThis has nothing to do with fraud and everything to do with political retribution that punishes poor children in need of assistance. I demand that President Trump unfreeze this funding and stop this brazen attack on our children.\u201d<\/p>\n<p>HHS also\u00a0<a href=\"https:\/\/nypost.com\/2025\/12\/16\/us-news\/hhs-probes-whether-billions-in-taxpayer-money-used-to-fuel-illegal-and-mass-migration\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">previously sent letters<\/a>\u00a0in December to Minnesota Gov. Tim Walz and Minneapolis Mayor Jacob Frey asking whether the billions of taxpayer dollars helped<a href=\"https:\/\/nypost.com\/2025\/12\/06\/us-news\/stephen-miller-calls-minnesota-welfare-scam-with-somali-migrants-single-greatest-theft-of-taxpayer-dollars\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">\u00a0unlawfully \u201cfuel illegal and mass migration,\u201d<\/a>\u00a0The Post first reported.<\/p>\n<p>Those inquiries were followed by probes the Treasury Department and House Oversight Committee\u00a0<a href=\"https:\/\/nypost.com\/2025\/12\/01\/us-news\/treasury-house-panel-launch-probes-into-tim-walzs-handling-of-1b-food-aid-fraud\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">also launched<\/a>\u00a0into the mounting fraud scandal, which involves several nonprofits linked to the Somali community in the Twin Cities.<\/p>\n<p>Around 130,000 illegal migrants resided in Minnesota as of 2023, an increase of around 40,000 from 2019 and roughly 2% of the state\u2019s population,\u00a0<a href=\"https:\/\/www.pewresearch.org\/race-and-ethnicity\/2025\/08\/21\/u-s-unauthorized-immigrant-population-reached-a-record-14-million-in-2023\/re_2025-08-21_unauthorized-immigrants_0-06\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">according to the Pew Research Center<\/a>.<\/p>\n<p>The Somali diaspora population in the state tops 100,000, most of whom live in the Minneapolis-St. Paul area.<\/p>\n<p>Federal prosecutors have already secured dozens of convictions related to $250 million in funds stolen by one of the Somali-linked organizations, Feeding Our Future, which used the ill-gotten gains to purchase luxury cars and real estate holdings.<\/p>\n<p>HHS also\u00a0previously sent letters\u00a0in December to Minnesota Gov. Tim Walz. @Tim_Walz\/X<\/p>\n<p>The Department of Health and Human Services will freeze taxpayer funding from the Child Care Development Fund (CCDF), the Temporary Assistance for Needy Families (TANF) program, and the Social Services Block Grant program. AP<\/p>\n<p>First Assistant Minnesota US Attorney Joe Thompson has since alleged, however, that the \u201cmagnitude cannot be overstated\u201d and claimed fraudsters skimmed as much as $9 billion.<\/p>\n<p>\u201cWhat we see in Minnesota is not a handful of bad actors committing crimes. It\u2019s staggering, industrial-scale fraud,\u201d Thompson told reporters in a Dec. 18 news conference.<\/p>\n<p>YouTuber Nick Shirley ramped up the pressure by visiting around 10 child care centers in the state that took $111 million in taxpayer funds \u2014 a little less than half of which appeared to be open, subsequent reporting from the Minnesota Star Tribune confirmed.<\/p>\n<p>Walz acknowledged the concerns about fraud in a press conference Monday at which he also announced the\u00a0<a href=\"https:\/\/nypost.com\/2026\/01\/05\/us-news\/gov-tim-walz-ends-re-election-campaign-with-zero-regret-slams-trump-and-conspiracy-theorists-over-fraud-scandal\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">end of his third run for the governor\u2019s office<\/a>.<\/p>\n<p>\u201cWe cannot effectively deliver programs and services if we can\u2019t earn the public\u2019s trust,\u201d the Minnesota Democrat said, before taking a shot at President Trump and his \u201callies in Washington.\u201d\u00a0<\/p>\n<p>\u201cWe\u2019ll win the fight against the fraudsters, but the political gamesmanship we\u2019re seeing from Republicans is only making that fight harder,\u201d he added.<\/p>\n<p>Trump fired back in a Truth Social post Monday: \u201cMinnesota\u2019s Corrupt Governor will possibly leave office before his Term is up but, in any event, will not be running again because he was caught, REDHANDED, along with Ilhan Omar, and others of his Somali friends, stealing Tens of Billions of Taxpayer Dollars.\u201d<\/p>\n<p>\u201cI feel certain the facts will come out, and they will reveal a seriously unscrupulous, and rich, group of \u2018SLIMEBALLS,&#8217;\u201d the president also said.<\/p>\n<p>\u201cGovernor Walz has destroyed the State of Minnesota, but others, like Governor Gavin Newscum, JB Pritzker, and Kathy Hochul, have done, in my opinion, an even more dishonest and incompetent job. NO ONE IS ABOVE THE LAW!\u201d<\/p>\n<p>A spokesperson for Colorado Gov. Jared Polis said \u201cthe state has not been officially notified of any changes to these funding sources,\u201d but if accurate, \u201cit would be awful to see the federal government targeting the most needy families and children this way.\u201d<\/p>\n<p>A rep for the Gov. Gavin Newsom administration also said California had not gotten guidance on funding changes, but said the state is \u201ccommitted to safeguarding the integrity of all child care subsidy payments and takes any potential misuse of funds seriously.\u201d<\/p>\n<p>Reps for the governors in New York, Illinois and Minnesota did not immediately respond to requests for comment.<\/p>\n","protected":false},"excerpt":{"rendered":"WASHINGTON \u2014 The Trump administration is cutting off more than $10 billion in social services and child care&hellip;\n","protected":false},"author":2,"featured_media":90515,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[153,396,2969,9,11,10,87,58],"class_list":{"0":"post-90514","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-new-york","8":"tag-donald-trump","9":"tag-fraud","10":"tag-funding","11":"tag-new-york","12":"tag-new-york-headlines","13":"tag-new-york-news","14":"tag-politics","15":"tag-us-news"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/90514","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/comments?post=90514"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/90514\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/90515"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=90514"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=90514"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=90514"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}