The Trump administration has suspended federal funding for programmes supporting needy families in five Democratic-led states, citing concerns about fraud. California, Colorado, Illinois, Minnesota and New York have been told they must provide additional documentation to access the funds, according to the Department of Health and Human Services (HHS).
The affected programmes include the Child Care and Development Fund, which subsidises daycare for low-income households, and Temporary Assistance for Needy Families, which provides cash aid and job training. The Social Services Block Grant, a smaller fund supporting various social services, is also affected. HHS said it had identified concerns that benefits meant for citizens and lawful residents may have been improperly provided to people ineligible under federal law, though no specific evidence has been published.
New York Governor Kathy Hochul said the state was prepared to take legal action, stating: "We'll fight this with every fiber of our being, because our kids should not be political pawns in a fight that Donald Trump seems to have with blue state governors." The office of Colorado Governor Jared Polis said it would be "awful to see the federal government targeting the most needy families and children this way" if the move were confirmed.
President Trump has not commented on the specifics but wrote on social media: "The Fraud Investigation of California has begun." A spokesperson for California Governor Gavin Newsom called Trump "a deranged, habitual liar" and defended the state's record on combating fraud. Senator Kirsten Gillibrand of New York accused the administration of using the funding halt to "score political points" rather than address fraud.
The action follows months of administration claims about fraud in federal programmes. Minnesota's childcare funding has been frozen since late last month amid investigations into alleged fraud at daycare centres. The administration has also raised fraud concerns over the Supplemental Nutrition Assistance Program (Snap), withholding administrative funds from mostly Democratic-run states unless they provide recipient data. Dr Mehmet Oz, administrator of the Centers for Medicare and Medicaid Services, said his agency plans to audit Minnesota's Medicaid bills, though he provided no evidence of fraud.
