WASHINGTON, January 7, 2026 – The Trump administration is freezing more than $10 billion in federal childcare and family assistance funds to California, Colorado, Illinois, Minnesota, and New York, citing concerns about potential fraud and misuse, according to the U.S. Department of Health and Human Services (HHS).

The freeze affects several major federal programs, including:

• Child Care and Development Fund (CCDF): $2.4 billion
• Temporary Assistance for Needy Families (TANF): $7.35 billion
• Social Services Block Grant (SSBG): $869 million

HHS said the freeze will remain in place pending further review of these programs in the five states.

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Governors Condemn Freeze

Democratic governors in the affected states sharply criticized the move.

• New York Governor Kathy Hochul called the freeze “vindictive and cruel,” saying, “Our kids should not be political pawns in a fight that Donald Trump seems to have with blue state governors.”
• Illinois Governor J.B. Pritzker described the action as “wrong and cruel.”

California Governor Gavin Newsom emphasized that his state has already blocked over $125 billion in fraudulent claims since he took office.

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Allegations of Targeting Immigrant Communities

In recent weeks, the Trump administration singled out Minnesota, alleging widespread fraud in welfare and social services programs. The administration has been particularly critical of the state’s Somali-American community and Democratic leaders, including Governor Tim Walz and Representative Ilhan Omar, citing them in political rhetoric.

Rights advocates have suggested that the administration may be using fraud investigations as a pretext to target immigrants and political opponents.

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Background

The Trump administration has a history of threatening federal funding cuts over a range of issues, including alleged program fraud, diversity initiatives, and university protests against U.S. foreign policy decisions.

This freeze is the latest in a series of actions that have heightened tensions between the federal government and Democratic-led states.

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Conclusion

The $10 billion HHS funding freeze is set to impact millions of families relying on federal support for childcare and social services. Governors and rights advocates warn that the move could disrupt critical services for children and vulnerable populations, while the administration maintains it is a necessary step to prevent misuse of taxpayer dollars.