HHS freezes $10B in child-care funding for 5 Democratic states, including California, alleging fraud

"The Department of Health and Human Services is freezing $10 billion in federal funds in five Democrat-run states over allegations of fraudulent child-care programming, an HHS official confirmed to ABC News. The HHS official confirmed that the five states are California, Colorado, Illinois, Minnesota and New York. The funding freeze will severely hamstring families in these states during the new year and could have long-term implications, particularly for low-income families, amid an ongoing affordability crisis, according to economic data."

""For too long, Democrat-led states and Governors have been complicit in allowing massive amounts of fraud to occur under their watch," a health department spokesperson wrote in a statement to ABC News, adding that the administration is "ensuring that federal taxpayer dollars are being used for legitimate purposes." A senior Trump administration official said the child-care programs were frozen because of "rampant fraud" and "giving money to illegals.""

The Department of Health and Human Services is freezing $10 billion in federal funds allocated to five Democrat-run states—California, Colorado, Illinois, Minnesota, and New York—over allegations of fraudulent child-care programming. The funding freeze threatens families in the affected states, especially low-income households, amid an ongoing affordability crisis. Officials cited alleged instances of fraud and concerns about funds reaching undocumented immigrants, though evidence has not been confirmed for all states. The action followed an unverified online video alleging fraud in Minneapolis Somali communities and ongoing investigations into exploitation of federally funded nutrition programs.

Read at ABC7 San Francisco