U.S. News
Trump Admin Moves to Freeze $10 Billion in Social Services Funding to 5 States
By Jake Beardslee · January 6, 2026
WASHINGTON — The Trump administration is preparing to suspend nearly $10 billion in federal funding for major social services programs in five states governed by Democrats, citing allegations of widespread fraud, according to a Department of Health and Human Services official.
The action would pause roughly $7 billion in funding for the Temporary Assistance for Needy Families program, nearly $2.4 billion allocated through the Child Care Development Fund, and about $870 million in social services grants that primarily support children. The states affected are Minnesota, New York, California, Illinois, and Colorado.
The New York Post first reported that the Department of Health and Human Services planned to withhold the funds.
HHS spokesperson Andrew Nixon said the administration believes the states have failed to adequately safeguard federal resources. “For too long, Democrat-led states and Governors have been complicit in allowing massive amounts of fraud to occur under their watch,” Nixon said. “Under the Trump Administration, we are ensuring that federal taxpayer dollars are being used for legitimate purposes. We will ensure these states are following the law and protecting hard-earned taxpayer money.”
Officials in Illinois said they had not yet been formally notified of any changes to their funding. In a statement, the Illinois Department of Human Services criticized the administration’s move, saying, “This is yet another politically-motivated action by the Trump Administration that confuses families and leaves states with more questions than answers. IDHS will provide an update if it is made aware of program or funding changes.”
The broader funding freeze follows an announcement last week in which HHS said it had halted federal child care funding for Minnesota due to what it described as “blatant fraud” within the state’s public assistance programs. Federal prosecutors have charged more than 90 people in connection with fraud cases uncovered in Minnesota since 2021, estimating potential losses could total as much as $9 billion.
The investigations stem from a $250 million COVID-era scheme involving the nonprofit Feeding Our Future, which was accused of stealing money from the Federal Child Nutrition Program. Subsequent probes have identified what federal authorities have characterized as “large-scale fraud” in programs providing housing for seniors and people with disabilities, as well as services for children with autism.
President Donald Trump has repeatedly criticized Minnesota officials over their handling of the fraud cases and has attacked Somali immigrants, asserting they have “ripped off” the state. While many of the defendants charged in the fraud schemes are of Somali descent, others are not.
Trump has also targeted California, led by Democratic Gov. Gavin Newsom, calling the state “more corrupt” than Minnesota. In a Truth Social post on Tuesday, the president said that “the fraud investigation of California has begun,” though he did not offer evidence of systemic fraud in California’s social services programs or provide additional details about the alleged investigation.
Outside of Minnesota, the administration has not publicly presented evidence of widespread fraud affecting social services programs in New York, Illinois, or Colorado.
The funding freeze reflects a broader pattern in recent months in which the Trump administration has restricted federal money flowing to Democratic-led states and cities. During last year’s historic federal government shutdown, the administration paused billions of dollars in funding for infrastructure and climate-related projects and reduced disaster preparedness grants.
Democrats have accused the White House of using federal funds approved by Congress as political leverage, warning that the funding freezes could disrupt essential services for families and children while circumventing the legislative process.