HHS Freezes $10 Billion in Funding to Five Blue States, Following Ongoing Fraud Investigations


Posted originally on CTH on January 6, 2026 | Sundance 

Last Friday Dept of Homeland Security (DHS) began surging roughly 2,000 federal agents and officers from Immigration and Customs Enforcement’s deportation branch and Homeland Security Investigations, the agency’s investigative arm tasked with fighting transnational crimes into Minnesota.

The investigative objective appears to be utilizing the massive and systemic fraud throughout Minnesota as an entry gate to expand the investigation into other states.  The key takeaway is that Minnesota simply reflects the tip of the iceberg and multiple Democrat run states likely have the same or worse fraud ongoing.

The Dept of Health and Human Services (HHS) now follow up on the DHS surge with an announcement that $10 billion in Temporary Assistance to Needy Families (TANF) payments are being halted as the investigations expand.  Four additional states are being reviewed: California, Colorado, Illinois and New York, join Minnesota in seeing their federal funds stopped pending review and audit.

This is a smart approach because releasing the funds will be contingent upon the states accepting the audits.  We all know that genuine audits of those state records will likely reveal massive fraud within the subsidy system that has been abused by Democrats.  Minnesota has provided the entry point for a much larger corruption and fraud review.

WASHINGTON — The Trump administration is cutting off more than $10 billion in social services and child care funding meant for a handful of Democrat-led states over concerns that the benefits were fraudulently funneled to non-citizens, officials told The Post Monday.

The Department of Health and Human Services will freeze taxpayer funding from the Child Care Development Fund (CCDF), the Temporary Assistance for Needy Families (TANF) program, and the Social Services Block Grant program.

At least $7.35 billion in TANF money will be prevented from going to California, Colorado, Illinois, Minnesota, and New York. The CCDF funding block of nearly $2.4 billion affects all those states.

Another $869 million from the Social Services Block Grant coffers is being kept from all five states as well.

The funding pauses were to be announced via letters to each state sent Monday, citing concerns that benefits were fraudulently going to non-US citizens.

The HHS Office of Inspector General found more than six years ago that New York City improperly billed the federal government for more than $24.7 million in child care subsidies. (read more)

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