The Trump administration on Tuesday night said it was freezing $10 billion in federal grant funds for certain child care and family assistance programs in five states because of “serious concerns about widespread fraud” in state-administered programs.
All five states targeted by the freeze — California, Colorado, Illinois, Minnesota, and New York — are led by Democrats.
The action applies to three programs overseen by the U.S. Health and Human Services Department’s Administration for Children and Families: Child Care and Development Fund, Temporary Assistance for Needy Families, and Social Services Block Grant.
The move comes a day after Minnesota Gov. Tim Walz dropped his bid for a third term amid political fallout from widespread fraud in social service programs in the state, including child-care services, which a federal prosecutor has estimated cost more than $9 billion.
“Families who rely on child care and family assistance programs deserve confidence that these resources are used lawfully and for their intended purpose,” said Deputy HHS Secretary Jim O’Neill in a statement.
