Trump admin freezes $10 BILLION in childcare funds to 5 Dem-led states over fraud concerns

The Trump administration is set to freeze $10 billion in funding in childcare subsidies that have been going to five Democrat-led states in the US, including Minnesota, New York, California, Illinois and Colorado. The move follows an explosive report from independent journalist Nick Shirley, who alleged that millions of dollars have been funneled to Somali-run daycare centers in Minnesota.

Around $7 billion in funding will be frozen that has been flowing through the Temporary Assistance for Needy Families program, as well as $2.4 billion going to the Child Care Development Fund. Both programs are meant to assist families with daycare and related expenses. Additionally, $870 million in social service grants will be paused.

The freeze builds on the move from the administration to pause $185 million in annual funds going to Minnesota for day care centers. Authorities have said that there are over a dozen welfare fraud schemes in the state that have led to billions of dollars in fraud. Since Shirley's explosive report, others have identified potential daycare fraud taking place in other Democrat-led states. Although the New York Times claimed that there was "no evidence" to suggest widespread fraud in other states, California has seen similar fraud prosecutions like in Minnesota, per the DOJ.

Six years ago, the HHS Office of Inspector General also found that New York City also improperly billed the federal government over $24.7 million in childcare funds.

Andrew Nixon, a spokesman for the Department of Health and Human Services (HHS), said, “Democrat-led states and governors have been complicit in allowing massive amounts of fraud to occur under their watch. Under the Trump administration, we are ensuring that federal taxpayer dollars are being used for legitimate purposes."

Senator Kristen Gillibrand (D-NY) reacted to the Trump administration's move to cut the funding amid the fraud allegations. “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," she said.

In addition to the fraud allegations in Minnesota from Shirley, federal prosecutors have gotten at least 60 convictions in the sprawling fraud case related to the "Funding Our Futures" nonprofit in Minnesota. Several of the daycares that were featured in Shirley's video were also "meal sites" for Feeding Our Future.