The Department of Health and Human Services (HHS) has frozen $10 billion in child care, food assistance, and other social services in Democrat-led states: California, Colorado, Illinois, Minnesota, and New York.
The move comes amid the Trump administration’s allegations of massive child care program fraud in these states, claiming that funds were being improperly diverted to undocumented immigrants.
The action builds on an existing funding halt in Minnesota, which has faced investigations into a $250 million COVID-19-era fraud scheme involving the nonprofit Feeding Our Future.
Economic experts warn that the sudden loss of child care and food assistance payments could severely affect low-income families currently struggling with an affordability crisis.