President Donald Trump told reporters on Sunday that those responsible for the historic fraud in Minnesota — members of the Somali community in particular — aren't just ripping off the Gopher State but the country at large.
"Think of it: $19 billion at least they've stolen from Minnesota and from the United States," said Trump.
"We're not going to pay it any more. We're going to have [Gov. Tim] Walz go pay. We're not going to pay them, and we're not going to pay California, and we're not going to pay Illinois."
In the wake of the president's remarks, the Trump administration cut off five Democrat-run states' access to over $10 billion in federal child care and family assistance funds.
'It's a giant scam.'
On Tuesday, the Department of Health and Human Services announced that it had barred California, Colorado, Illinois, Minnesota, and New York from accessing nearly $2.4 billion in Child Care and Development Fund money; $7.35 billion in Temporary Assistance for Needy Family funds; and $869 million in Social Services Block Grant funds.
"Families who rely on child care and family assistance programs deserve confidence that these resources are used lawfully and for their intended purpose," HHS Deputy Secretary Jim O'Neill said in a statement. "This action reflects our commitment to program integrity, fiscal responsibility, and compliance with federal requirements."
HHS Assistant Secretary Alex Adams, the head of the Administration for Children and Families, emphasized the government's responsibility to "ensure these programs serve the families they were created to help," adding that "when there are credible concerns about fraud or misuse, we will act."
HHS indicated that the funding freeze will remain in place until the ACF completes a review and determines that the affected states are in compliance with federal requirements.
'It's cruel.'
Adams and O'Neill also announced on Tuesday that the Trump administration is ending Biden-era practices of providing child-care centers with payments up front without verifying attendance.
Democrats melted down over the funding pause, characterizing the effort to ensure taxpayer dollars aren't siphoned away by fraudsters as an attack on children.
New York Gov. Kathy Hochul, whose state has seen its share of day-care fraud, said in response to the funding freeze, "It's vindictive. It's cruel. And we'll fight it with every fiber of our being."
Sen. Kirsten Gillibrand (D-N.Y.) tried downplaying the fraud, claiming that "this has nothing to do with fraud and everything to do with political retribution that punishes poor children in need of assistance."
"Rather than making life easier and more affordable for our families, Donald Trump is stripping away child care from Illinois families who are just trying to go to work," said Illinois Gov. J.B. Pritzker (D). "Thousands of parents and children depend on these child-care programs to help them make ends meet, and now their livelihoods are being put at risk."
Colorado Sen. Michael Bennet, a Democrat with aspirations of becoming his state's next governor, tweeted, "Donald Trump has declared war on Colorado. He is now robbing thousands of vulnerable Colorado families of the critical support they need to afford food, housing, and health care."
Trump raised the matter of fraud in Minnesota during a New Year's Eve event, then noted that "California is worse, Illinois is worse, and, sadly, New York is worse. A lot of other places. We're going to get to the bottom of all of it. It's a giant scam."
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