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Trump administration freezes billions in social services funding to five Democratic states

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By Alex Stambaugh, Tami Luhby, Kaanita Iyer, CNN

(CNN) — The Trump administration is slashing $10 billion in funds for social services and child care in five Democratic-led states, a Health and Human Services official confirmed to CNN, with the agency suggesting without evidence that the funding has been used fraudulently.

The freeze, first reported by the New York Post, will impact California, Colorado, Illinois, Minnesota and New York, according to news reports confirmed by HHS.

HHS will cut more than $7 billion in funding for the Temporary Assistance for Needy Families program, which provides cash assistance to households, along with more than $2 billion for the Child Care and Development Fund. The department will also hold around $870 million from the Social Services Block Grant.

“For too long, Democrat-led states and Governors have been complicit in allowing massive amounts of fraud to occur under their watch,” HHS spokesperson Andrew Nixon told CNN. “Under the Trump Administration, we are ensuring that federal taxpayer dollars are being used for legitimate purposes. We will ensure these states are following the law and protecting hard-earned taxpayer money.”

CNN has reached out to the Office of Management and Budget and all five states’ departments of health and gubernatorial offices for more information about the cuts.

The news comes just days after the Trump administration paused federal funding of child care programs in Minnesota amid a deepening federal probe into allegations of fraud involving social services. The allegations were made in a YouTube video by 23-year-old content creator Nick Shirley, who claimed, with little evidence, that Somali-run child care centers in Minnesota were fraudulently taking funding meant to provide child care for low-income families.

In the wake of the viral video, the Department of Homeland Security and FBI ramped up their presence in the state, federal funding for child care there was frozen and the Trump administration said it is deploying 2,000 federal agents as part of an immigration crackdown. Federal and state investigations into alleged wrongdoing are ongoing.

There has been no evidence to suggest the other four Democratic states have suffered widespread fraud.

Sen. Kirsten Gillibrand, a Democrat from New York, condemned the funding freeze and accused the administration of “political retribution.”

“To use the power of the government to harm the neediest Americans is immoral and indefensible” the senator said in statement posted on X. “This has nothing to do with fraud and everything to do with political retribution that punishes poor children in need of assistance.”

The-CNN-Wire
™ & © 2026 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.

CNN’s Hanna Park contributed to this report.

The post Trump administration freezes billions in social services funding to five Democratic states appeared first on News Channel 3-12.

Trump administration freezes billions in social services funding to five Democratic states

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By Alex Stambaugh, Tami Luhby, Kaanita Iyer, CNN

(CNN) — The Trump administration is freezing $10 billion in funds for social services and child care in five Democratic-led states, according to a Health and Human Services official, with the agency suggesting without evidence that the funding has been used fraudulently.

The freeze, first reported by the New York Post, will impact California, Colorado, Illinois, Minnesota and New York, according to news reports confirmed by HHS.

HHS will cut more than $7 billion in funding for the Temporary Assistance for Needy Families program, which provides cash assistance to households, along with more than $2 billion for the Child Care and Development Fund. The department will also hold around $870 million from the Social Services Block Grant.

“For too long, Democrat-led states and Governors have been complicit in allowing massive amounts of fraud to occur under their watch,” HHS spokesperson Andrew Nixon told CNN. “Under the Trump Administration, we are ensuring that federal taxpayer dollars are being used for legitimate purposes. We will ensure these states are following the law and protecting hard-earned taxpayer money.”

CNN has reached out to the Office of Management and Budget and all five states’ departments of health and gubernatorial offices for more information about the cuts.

The Colorado Department of Human Services told CNN that the agency has not received a notification from the administration about the freeze.

“Should these funding sources change, we remain committed to supporting our families in Colorado and will continue to advocate for the programs and services that help them thrive,” the department said.

The news comes just days after the Trump administration paused federal funding of child care programs in Minnesota amid a deepening federal probe into allegations of fraud involving social services. The allegations were made in a YouTube video by 23-year-old content creator Nick Shirley, who claimed, with little evidence, that Somali-run child care centers in Minnesota were fraudulently taking funding meant to provide child care for low-income families.

In the wake of the viral video, the Department of Homeland Security and FBI ramped up their presence in the state, federal funding for child care there was frozen and the Trump administration said it is deploying 2,000 federal agents as part of an immigration crackdown. Federal and state investigations into alleged wrongdoing are ongoing.

There has been no evidence to suggest the other four Democratic states have suffered widespread fraud.

Sen. Kirsten Gillibrand, a Democrat from New York, condemned the funding freeze and accused the administration of “political retribution.”

“To use the power of the government to harm the neediest Americans is immoral and indefensible” the senator said in statement posted on X. “This has nothing to do with fraud and everything to do with political retribution that punishes poor children in need of assistance.”

This story has been updated with additional information.

The-CNN-Wire
™ & © 2026 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.

CNN’s Hanna Park contributed to this report.

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Minnesota Gov. Tim Walz ends reelection bid amid welfare fraud scandal

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Minnesota Governor Tim Walz


CNN

By Jeff Zeleny, CNN

(CNN) — Minnesota Gov. Tim Walz dropped his reelection bid for a third term Monday as a welfare-fraud scandal in his state has intensified and become a political flashpoint seized upon by President Donald Trump.

“I can’t give a political campaign my all,” Walz told reporters at the state capitol in St. Paul. “Every minute that I spend defending my own political interests would be a minute I can’t spend defending the people of Minnesota against the criminals who prey on our generosity and the cynics who want to prey on our differences.”

Walz read from a prepared statement and walked away without taking questions.

Walz, the Democratic nominee for vice president in 2024, reached his decision after spending the weekend discussing his plans with friends and advisers. He met with Minnesota Sen. Amy Klobuchar on Sunday, two people familiar with the matter told CNN, as the Democratic senator decides whether to jump into the governor’s race.

Klobuchar, who was reelected to a fourth term in 2024, has been “getting a lot of outreach, encouraging her to run,” a person close to her told CNN, and is “seriously considering it.” Klobuchar did not respond to a request for comment about her meeting with Walz.

She is a former prosecutor in Minneapolis and serves in Senate leadership, but over the years has privately expressed interest in being governor and serving as a chief executive. The senator sought the Democratic presidential nomination in 2020.

For Walz, 61, the announcement capped a rapid rise – and fall – on the national scene after former Vice President Kamala Harris selected him to be her running mate during their abbreviated presidential race. Walz relished in the role of attack dog, with his blistering critiques of Trump becoming a soundtrack for Democrats during the campaign.

A deepening federal probe into a fraud scandal in Minnesota complicated Walz’s bid for an unprecedented third term. He has not been accused of any wrongdoing, but Republicans have sought to blame Walz and Democrats for the massive abuse of taxpayer dollars.

It was the recent criticism from the Trump administration and right-wing allies that Walz said contributed to his decision not to seek reelection.

“For the last several years, an organized group of criminals have sought to take advantage of this state’s generosity,” Walz said. “And even as we make progress in the fight against the fraudsters, we now see an organized group of political actors seeking to take advantage of a crisis.”

Walz had been criticized for his administration’s oversight of the welfare programs. Several Democrats in the state privately cautioned Walz against seeking reelection as outrage intensified in Minnesota and beyond over the misuse of funds.

Minnesota officials have until January 9 to prov

De la planificación al poder: cómo Rubio moldeó la operación Maduro

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Por Jennifer Hansler, Alayna Treene y Kylie Atwood

Mientras las fuerzas especiales estadounidenses realizaban una audaz redada nocturna para capturar al presidente de Venezuela, Nicolás Maduro, el viernes por la noche, el presidente Donald Trump observaba la acción desde su residencia en Mar-a-Lago. Entre quienes lo acompañaban se encontraba Marco Rubio, su poderoso secretario de Estado y asesor de Seguridad Nacional.

Fue un momento que se venía gestando desde hacía años para Rubio, hijo de inmigrantes cubanos cuya carrera política se originó en el sur de Florida, hogar de miles de inmigrantes venezolanos, que huyeron del régimen de Maduro.

Rubio tenía desde hacía tiempo la mira puesta en Maduro, dicen las fuentes, y fue una fuerza impulsora de la estrategia que preparó el escenario para las dramáticas escenas que se desarrollaron en la Sala de Crisis de facto, en Florida, esa noche.

Horas después, Trump anunció que le encomendaba a Rubio ayudar a “dirigir” Venezuela junto con otros funcionarios clave en la sala, un pronunciamiento vago que planteó más preguntas de las que respondió, pero que también subrayó el papel indispensable de Rubio.

Su última tarea, liderando los esfuerzos de construcción nacional de la administración, consolida su enorme influencia en la política y marca un ascenso extraordinario para el principal diplomático estadounidense. Para un hombre que ya tiene más de un trabajo en Washington, este podría ser el más arriesgado hasta la fecha.

“Hay muchos aspectos de Venezuela que no son fáciles de gobernar”, dijo un exdiplomático estadounidense de alto rango que habló con CNN bajo condición de anonimato. “Intentar imponer el orden en un lugar más grande que Iraq no es tarea fácil”.

Entre exdiplomáticos y expertos en la región, hay profundas preguntas sobre los planes de Estados Unidos para una Venezuela post-Maduro, cómo se ejecutarán y cuánto tiempo permanecerán en el poder los funcionarios anteriormente alineados con Maduro.

Encontrar respuestas a esas preguntas recaerá en gran medida en Rubio y su equipo.

“Espero que [la administración] realmente haya planeado esto, y que haya un seguimiento programado de cómo se desarrollará”, dijo Todd Robinson, ex embajador interino de Estados Unidos en Venezuela durante el primer mandato de Trump. “Pero creo que esa no ha sido la historia de nadie con esta administración”.

Un ex alto funcionario estadounidense afirmó que se realizó una enorme planificación durante el primer mandato de Trump en relación con una transición democrática en Venezuela. No está claro si la administración recurrirá a esos planes. Este funcionario señaló que, con los remanentes del régimen de Maduro aún en el poder, sería prematuro hacerlo.

Rubio pasó los meses previos a la operación del sábado reunido en la Casa Blanca con el vicesecretario general de la Casa Blanca, Stephen Miller, para elaborar la estrategia, dijeron fuentes a CNN.

Durante todo este tiempo, Rubio rara vez se alejó de Trump. Pasa la mayor parte de su tiempo en Washington, en la Casa Blanca, que utiliza como base de operaciones. Su tiempo en el Departamento de Estado suele dedicarse exclusivamente a reuniones bilaterales. Ha pasado muchos fines de semana en Florida, junto a Trump. Rubio ha evitado viajar al extranjero y, en su lugar, ha enviado a su adjunto.

Al igual que con muchas de las prioridades de política exterior de la administración, las discusiones sobre cómo “gestionar” Venezuela se llevan a cabo en un pequeño círculo de asesores políticos de confianza, como Rubio y Miller. Richard Grenell, quien inicialmente participó en la cartera como enviado diplomático para misiones especiales, no ha participado en el desarrollo de políticas durante meses, según informaron funcionarios estadounidenses. Tampoco lo han hecho m

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