Due to the recent discovery of massive amounts of fraud in the state of Minnesota, the Trump administration is cutting off $10 billion in social services and child care funding that was destined to be sent to Democrat-led states, fearing the money has been given to non-citizens. The Department of Health and Human Services is slapping a freeze on taxpayer dollars from the Child Care Development Fund (CCDF), the Temporary Assistance for Needy Families (TANF) program, and the Social Services Block Grant program.
Concerning the TANF program, a total of $7.35 billion will be stopped from being sent to California, Colorado, Illinois, Minnesota, and New York. The funding block of $2.4 billion for CCDF will also impact those states. An additional $869 million from the Social Services Block Grant will be held back from those five states also.
The freezes were announced in letters sent to each state at the beginning of the week, justifying the action by stating concerns that benefits were being handed out to illegal aliens. The HHS Office of Inspector General discovered over six years ago that New York City had improperly billed the federal government for a staggering $24.7 million in subsidies for child care.
According to the New York Post, Sen. Kirsten Gillibrand (D-NY) was highly displeased with the Trump administration’s decision and put them on full blast for the funding freezes. “To use the power of the government to harm the neediest Americans is immoral and indefensible,” Gillibrand went on to say in a statement. “This has nothing to do with fraud and everything to do with political retribution that punishes poor children in need of assistance. I demand that President Trump unfreeze this funding and stop this brazen attack on our children.”
In December 2025, HHS blasted out letters to Minnesota Democratic Gov. Tim Walz and Minneapolis Mayor Jacob Frey asking them if billions of taxpayer funds were responsible for fueling “illegal and mass migration.” Investigations by the Treasury Department and House Oversight Committee were launched into several nonprofit organizations that were linked to the Somali community in the Twin Cities.
Data from the Pew Research Center collected in 2023 revealed that 130,000 illegal aliens live in the state of Minnesota. This is a massive increase of 40,000 since 2019 and makes up almost two percent of the whole state’s population. The Somali diaspora population in Minnesota is over 100,000, almost all of whom live in the Minneapolis-St. Paul area.
Federal prosecutors have been hard at work cracking down on fraud, having secured dozens of convictions connected to $250 million in funds that were stolen by one Somali-linked organization, Feed Our Future, which funneled the money to pay for luxury vehicles and real estate holdings. President Donald Trump himself had a whole lot to say about uncovering the fraud in Minnesota, which he expressed in his take-no-prisoners manner in a post on Truth Social.
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“Minnesota’s Corrupt Governor will possibly leave office before his Term is up but, in any event, will not be running again because he was caught, REDHANDED, along with Ilhan Omar, and others of his Somali friends, stealing Tens of Billions of Taxpayer Dollars,” the president wrote. “I feel certain the facts will come out, and they will reveal a seriously unscrupulous, and rich, group of ‘SLIMEBALLS.'”
“Governor Walz has destroyed the State of Minnesota, but others, like Governor Gavin Newscum, JB Pritzker, and Kathy Hochul, have done, in my opinion, an even more dishonest and incompetent job. NO ONE IS ABOVE THE LAW!” Trump added. Spokespeople representing Gov. Jared Polis of Colorado and Gov. Gavin Newsom of California said they have not received official government notice about funding changes.