The Trump administration froze $10 billion in funding for social services programs in five Democratic-led states on Tuesday, citing concerns about fraud that have not been substantiated with evidence, a Health and Human Services official confirmed to MS NOW on Tuesday.
The freeze affects programs that provide support to low-income families, including Temporary Assistance for Needy Families, which provides cash assistance for living expenses; the Child Care Development Fund, which helps low-income families access child care; and social services grants that primarily support at-risk children. The states affected are Minnesota, New York, California, Illinois and Colorado, the HHS official confirmed.
The move comes after HHS officials announced last week they were immediately freezing $185 million in child care payments to Minnesota after a viral video from a conservative social media influencer claimed that several day care centers run by Somali Americans were receiving federal funding but not operating.
While federal prosecutors have secured convictions in cases of large-scale social services fraud in Minnesota in recent years, with many of the dozens convicted of Somali descent, the influencer’s specific claims have been called into question. State investigators have since said the facilities were functioning normally.
The planned funding freeze was first reported by the New York Post on Monday.
“We have a responsibility to protect taxpayer dollars and ensure these programs serve the families they were created to help,” Alex Adams, assistant HHS secretary for children and families, said in a Tuesday statement confirming the news. “When there are credible concerns about fraud or misuse, we will act.”
A news release from HHS said that the Administration for Children and Families, the sub-agency that administers the funds, is looking into concerns that some of the benefits “intended for American citizens and lawful residents may have been improperly provided to individuals who are not eligible under federal law.”
The department has yet to publicly provide any evidence of fraud or misuse in those states beyond the cases already prosecuted in Minnesota. The HHS official did not immediately respond to a request for more information on these claims.
The funds will remain frozen until ACF conducts a review “and determines that states are in compliance with federal requirements,” according to the release, which states that the agency notified the governors of the five states of the move via letters.
Gov. Kathy Hochul of New York said earlier Tuesday that she had not received formal notification of the freeze, but called it “an impending threat” and said her state was prepared to challenge the measure in court.
“Why is there such a frontal assault on children in this nation from this administration?” Hochul asked. “Just back in November, they stopped feeding our kids. Now they won’t vaccinate our kids,” she added, referring to the expiration of food stamps in November during the government shutdown, and the Monday announcement that the federal health department will dramatically reduce the number of vaccinations recommended for babies and children.
Sen. Kirsten Gillibrand, D-N.Y., also said in a statement on Monday that the freeze had “nothing to do with fraud and everything to do with political retribution that punishes poor children in need of assistance.” Eric Maruyama, deputy press secretary for Gov. Jared Polis, D-Colo., told MS NOW the state had not been formally notified of a funding freeze, adding, “If true, it would be awful to see the federal government targeting the most needy families and children this way.” A spokesperson for the Illinois Department of Human Services told MS NOW the state also had not received any official notification of the funding freeze. Spokespeople for the governors of Minnesota and California did not immediately respond to questions from MS NOW on Tuesday afternoon about whether they had received notification of the planned freeze. Update, 7:30 p.m.: This story was updated with additional information from HHS. Will McDuffie contributed reporting.
Julianne McShane is a breaking news reporter for MS NOW. Recommended
