The Trump administration sent out letters Tuesday night to five blue states, freezing about $10 billion in funding for child care and social services programs pending a "thorough review," citing concerns over "systemic fraud."
Why it matters: The suspension of the funds could hurt low-income families in those states, depending on how long the freeze lasts, advocates say.
Where it stands: The letters, viewed by Axios, went to California, Colorado, Minnesota, Illinois and New York — suspending about $10 billion in funds for three programs:
- TANF, or Temporary Assistance for Needy Families, cash assistance that is the modern-day successor to welfare.
- Child Care Development Fund money that subsidizes child care programs in these states.
- SSBG, Social Services Block Grants, which fund child welfare services, like foster care.
Zoom in: The letters, from the Administration for Children and Families, a division of the Department of Health and Human Services (HHS), ask the states to provide data on all recipients of federal funding, including names, Social Security numbers and birth dates — in addition to other detailed information dating back years.
- The money is suspended until the review is complete, the letters say.
- The states were given a Jan. 20 deadline for some programs.
- The letters appear to have been written quickly. Requests for documents repeatedly refer to "Minnesota" in letters addressed to other states.
What they're saying: The White House did not immediately respond to Axios' request for comment Tuesday night.
- The letters say that "the Administration for Children and Families (ACF) is concerned by the potential for" extensive and systemic fraud.
- "These concerns have been heightened by recent federal prosecutions and additional allegations that substantial portions of federal resources were fraudulently diverted away from the American families they were intended to assist," reads the letter to Illinois.
- "Additionally, ACF has reason to believe that the State of Illinois is illicitly providing illegal aliens with CCDF benefits intended for American citizens and lawful permanent residents."
- The letter to California, says that the state "will be placed on a temporary restricted drawdown for all SSBG funds provided by ACF until further notice, pending successful and satisfactory review of the requested information."
What's next: The freeze will lead to delays in payments to child care providers, which will in turn cause closures, harming families in the five states, says Elliot Haspel, a senior fellow at the think tank Capita and a child care advocate. The TANF freeze will be painful, as well, he says.
- "They're basically holding these families hostage until the states turn over their records."
- "This has nothing to do with fraud and everything to do with political retribution that punishes poor children in need of assistance," Sen. Kirsten Gillibrand (D-New York) said in a statement about the freeze.
- Earlier in the day, the state's governor, Kathy Hochul, said she would fight the freeze in court.
- "Thousands depend on these programs, and now their livelihoods are at risk," Illinois governor JB Pritzker posted Tuesday night. "It's wrong and cruel — we'll take every step possible to defend Illinoisians."
Follow the money: In Colorado alone, cash assistance from TANF — known as Colorado Works — supports more than 50,000 children, according to the state's Department of Human Services.
- The department is currently reviewing the White House requests, a spokeswoman told Axios.
The other side: Asked about the potential impact on poor families, Andrew Nixon, a spokesman for HHS, said: "We have a duty to the American people to ensure their hard-earned taxpayer dollars are being used for legitimate purposes."
Go deeper: Democratic state officials erupt over Trump threat to child care funds
Editor's note: This story was updated with a statement from Pritzker and a response from the Colorado Department of Human Services.
