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. “Under the Trump Administration, we are ensuring that federal taxpayer dollars are being used for legitimate purposes. The Colorado Department of Human Services told CNN that the agency has not received a notification from the administration about the freeze. 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.

Source: CNN January 06, 2026 19:10 UTC