Trump Administration Freezes $10 Billion in Childcare and Family Aid to Democratic-Led States

The Trump administration on Tuesday froze over $10 billion in federal childcare and family assistance funds to five Democratic-led U.S. states.

The Trump administration on Tuesday froze more than $10 billion in federal childcare and family assistance funding to five Democratic-led states, Reuters reported, citing concerns over fraud and misuse of funds.

The U.S. Department of Health and Human Services said the freeze affects California, Colorado, Illinois, Minnesota and New York, and applies to several major welfare and social support programs pending further review.

According to HHS, the funding pause covers $2.4 billion from the Child Care and Development Fund, $7.35 billion from Temporary Assistance for Needy Families, and $869 million from the Social Services Block Grant.

Democratic governors sharply criticized the move, warning it would harm vulnerable families and children. New York Governor Kathy Hochul called the decision “vindictive and cruel,” while Illinois Governor JB Pritzker said children should not be used as political leverage.

California Governor Gavin Newsom’s office rejected the allegations, saying the state has blocked more than $125 billion in fraud since he took office and maintains strict oversight of federal programs.

Since returning to office, President Donald Trump has repeatedly threatened to withhold federal funding from states and institutions governed by Democrats, often citing alleged fraud, diversity initiatives or political disagreements.

The administration has also intensified scrutiny of Minnesota in recent weeks, alleging widespread welfare fraud linked to immigrant communities, claims state officials and rights groups strongly dispute.

Rights advocates say the funding freeze risks deepening political divisions while placing added strain on low-income families, as legal and administrative challenges to the decision are expected.

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