President threatens to freeze child-care funding for state

The federal government has launched a broad attack on social services in California, raising the specter of fraud and threatening to withhold billions of dollars of funding in areas including child care, a jolt to tens of thousands of working families.

- BY MELODY GUTIERREZ, DANIEL MILLER AND KATE SEQUEIRA

In a trio of Jan. 6 letters addressed to Gov. Gavin Newsom, the U.S. Department of Health and Human Services said it was concerned there had been “potential for extensive and systemic fraud” in childcare and other social services programs that rely on federal funding, and had “reason to believe” that the state was “illicitly providing illegal aliens” with benefits.

The letters did not detail evidence to support the claims. State officials immediately said the suggestions of fraud are unsubstantiated.

Health and Human Services said it would review how the funding had been used by the state, and was restricting access—at least temporarily—to additional money amid its inquiries. The federal government requested large volumes of administrative data and other files, including attendance documentation for child care. It also demanded beefed-up fiscal accountability requirements.

The Trump administration announced on Tuesday plans to freeze $10 billion in federal funds for similar programs in five Democrat-controlled states, including California. The others are Colorado, Illinois, Minnesota and New York.

Newsom and state Democratic leaders have accused President Trump of unleashing a political vendetta. Officials argued he is using unsubstantiated claims to justify a move that could jeopardize child care and social services for low-income families.

"It is unconscionable for Trump and Republicans to rip away billions of dollars that support child care and families in need, and this has nothing to do with fraud," said Robert Rivas (D-Hollister), speaker of the California Assembly, in a statement. “California taxpayers pay for these programs — period — and Trump has no right to steal from our hardworking residents. We will continue to fight back. ”Trump has justified the action in comments posted on his social media platform Truth Social, where he accused Newsom of widespread fraud.