Trump Administration to Freeze $10 Billion in Funding for Low-Income Families
“The Trump administration plans to freeze $10 billion in funding for child care subsidies, social services and cash support for low-income families in five states controlled by Democrats, claiming widespread fraud throughout those states, without citing evidence, after a major welfare fraud scheme in one of them.
Minnesota, New York, California, Illinois and Colorado will be cut off from around $7 billion in funding for the Temporary Assistance for Needy Families program, which provides cash assistance to households with children, according to two people familiar with the matter. The five states will also lose access to nearly $2.4 billion for the Child Care Development Fund, which supports child care for working parents, and around $870 million for social services grants that mostly benefit children at risk, the people said.
The funding pause could jeopardize programs that serve hundreds of thousands of low-income households in the five states.
The planned freeze appears to build on the administration’s pause last week in $185 million in annual aid to Minnesota day care centers after investigators said that more than a dozen welfare fraud schemes in that state had led to billions of dollars in taxpayer losses.”
Read more at New York Times.