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Trump administration to freeze 10 bln USD funding to 5 Democratic states amid alleged fraud

Xinhua
| January 7, 2026
2026-01-07

The Donald Trump administration plans to freeze 10 billion U.S. dollars in federal funding to five Democratic states -- Minnesota, California, New York, Illinois and Colorado -- amid alleged welfare fraud.

The funding, which includes child care subsidies, social services and cash support for low-income families, is being frozen over claims of widespread fraud across the states, without cited evidence, following a major welfare fraud scheme in Minnesota, according to The New York Times.

"The funding pause could jeopardize programs that serve hundreds of thousands of low-income households in the five states," the report said. 

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