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.
Gov. Gavin Newsom is responding after President Donald Trump said Tuesday that California is being investigated for fraud. The president said in a post on Truth Social that the "Fraud Investigation of California has begun," but he did not provide any specifics about the alleged fraud. In a statement to ABC News, Newsom's office said he's blocked more than $125 billion in fraud, arrested criminals and protected taxpayers from scam artists.