WASHINGTON, D.C.: The Trump administration has moved to suspend billions of dollars in federal support for childcare and family assistance programs in five U.S. states, escalating a broader standoff with Democratic-led governments over oversight, fraud, and federal priorities.

The U.S. Department of Health and Human Services said on January 6 it was freezing more than US$10 billion in funds to California, Colorado, Illinois, Minnesota, and New York, citing concerns about what it described as fraud and misuse of federal money.

According to U.S. Department of Health and Human Services, the freeze applies to three major programs: the Child Care and Development Fund worth $2.4 billion, Temporary Assistance for Needy Families totaling $7.35 billion, and the Social Services Block Grant amounting to $869 million. HHS said the states' access to the funds would be restricted pending further review.

The action comes as Donald Trump's administration has repeatedly warned that federal funding could be curtailed over issues ranging from alleged fraud in state-run programs to diversity initiatives and pro-Palestinian campus protests against Israel's war in Gaza. Since taking office, the administration has frequently clashed with states governed by Democrats.

Democratic leaders swiftly condemned the funding freeze, arguing it would harm families and children rather than address wrongdoing.

"Our kids should not be political pawns in a fight that Donald Trump seems to have with blue state (Democratic states) governors," said Kathy Hochul, calling the move "vindictive" and "cruel."

Illinois Governor JB Pritzker echoed that criticism, describing the decision as "wrong and cruel."

In California, the office of Governor Gavin Newsom said the state had aggressively tackled fraud under his administration, noting that more than $125 billion in fraudulent activity had been blocked since he took office.

Minnesota has faced particular scrutiny in recent weeks. Trump administration officials have alleged widespread fraud involving immigrants in the state's welfare and social service programs. Those claims have been paired with sharp criticism of Minnesota's political leadership and its large Somali-American community.

Officials in Washington have repeatedly targeted Minnesota Governor Tim Walz, the 2024 Democratic vice presidential nominee, as well as Democratic Representative Ilhan Omar, who represents a Minneapolis-based district and is one of the first Somali-Americans elected to Congress.

Rights advocates argue the administration's fraud investigations are being used as a pretext to advance a broader political agenda.

They say the funding freeze risks disrupting essential childcare, family support and social services for millions of low-income households while deepening partisan tensions between Washington and Democratic-led states.

HHS did not say how long the review would last or when funding might be restored, leaving states uncertain about how to plan for programs that support childcare access, welfare assistance, and community services.