U.S. President Donald Trump and Health and Human Services (HHS) Secretary Robert F. Kennedy Jr. attend a Make America Healthy Again (MAHA) Commission event, in the East Room of the White House in Washington, D.C., U.S., May 22, 2025.
Evelyn Hockstein | Reuters
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 programs in the state, 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.
“This action reflects our commitment to program integrity, fiscal responsibility, and compliance with federal requirements,” O’Neill said.
More than $7.3 billion in TANF funds have been frozen, and nearly $2.4 billion in CCDF funds have been frozen. Nearly $840 million in Social Services Block Grant funding was frozen.
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