> At a Glance
> – The Trump administration is withholding funds for child-care, cash aid and social-service programs in California, Colorado, Illinois, Minnesota and New York.
> – Officials cite “massive fraud” but have released no evidence or detailed plans.
> – Why it matters: Low-income families could lose daycare subsidies, cash assistance and food support if the pause sticks.
The White House confirmed Tuesday it is freezing federal aid that helps low-income parents pay for child care, buy diapers and access job training, targeting five Democratic-led states while offering no specifics on the alleged fraud driving the move.
What Programs Are Affected
The freeze hits three main lifelines:
- Child Care Development Block Grant – subsidizes daycare so parents can work or attend school
- Temporary Assistance for Needy Families – provides cash aid and job-training grants
- Social Services Block Grant – funds assorted local social-service programs
Together the grants keep hundreds of thousands of children fed, clothed and in safe care, according to state data.
What the Administration Says
Department of Health and Human Services spokesperson Andrew Nixon:

> “For too long, Democrat-led states and Governors have been complicit in allowing massive amounts of fraud to occur under their watch.”
A White House budget office official, speaking without authorization, tied the action to states “pouring money out” to people in the U.S. illegally. The administration has produced no numbers, audits or timelines to back its fraud claims.
State Reaction
None of the five targeted states-California, Colorado, Illinois, Minnesota, New York-had received formal notice of a broad funding pause by Tuesday afternoon, according to the Associated Press.
New York Gov. Kathy Hochul:
> “We’ll fight this with every fiber of our being, because our kids should not be political pawns in a fight that Donald Trump seems to have with blue-state governors.”
Colorado Gov. Jared Polis’ office:
“These resources support families in need and help them access food and much more. If true, it would be awful to see the federal government targeting the most needy families and children this way.”
California Gov. Gavin Newsom spokesperson Tara Gallegos:
> “Donald Trump is a deranged, habitual liar whose relationship with reality ended years ago.”
Pattern of Payment Delays
The move continues a months-long strategy in which the administration:
- Has frozen federal child-care funds to Minnesota since late April while investigating alleged fraud in Somali-run daycare centers
- Threatened to withhold SNAP administrative money unless Democratic states hand over recipient data-a process states say could take months
- Claimed fraud “may be worse than previously believed” in GOP-run states that submitted data, but has released no supporting figures
Key Takeaways
- Five Democratic states are suddenly facing the loss of billions in aid for their poorest residents
- The administration offers no public evidence of widespread fraud
- States say they have received no guidance on how to restore the money
- Previous court battles suggest legal challenges are imminent
Low-income parents who rely on subsidized daycare or cash assistance now wait to see whether the pause is a negotiating tactic-or a lasting cut.

