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President Trump cuts off over $10,000,000,000 in funding to these five states amid fraud concerns
In an effort to address alleged fraud in federal programs, the Trump administration has moved to freeze more than $10 billion in funding to five states, including California, Colorado, Illinois, Minnesota, and New York.
Per Fox News, the freeze primarily affects federal programs like the Child Care Development Fund, the Social Services Block Grant program, and Temporary Assistance for Needy Families (TANF), with the primary concern being that these taxpayer-funded benefits were potentially misallocated to non-U.S. citizens.
This action is part of President Trump’s broader strategy to address immigration issues and limit fraudulent use of government resources.
The largest portion of the freeze impacts TANF, which is responsible for providing support to low-income families. At least $7.35 billion in TANF funds will be withheld from the five states.
Additionally, nearly $2.4 billion from the Child Care Development Fund and $869 million from the Social Services Block Grant program are also affected. The move follows previous concerns about the improper distribution of these funds, including an investigation into whether the money was used to support illegal immigration.
Trump targets Minnesota's leadership over misuse of taxpayer funds
President Trump has publicly criticized the leadership of Minnesota, specifically Governor Tim Walz, accusing him of mishandling public funds.
On Truth Social, Trump claimed that Walz, along with U.S. Representative Ilhan Omar and other individuals connected to the Somali community in the state, was involved in diverting taxpayer dollars.
"Minnesota’s Corrupt Governor will possibly leave office before his term is up but, in any event, will not be running again because he was caught, REDHANDED, along with Ilhan Omar, and others of his Somali friends, stealing Tens of Billions of Taxpayer Dollars," Trump wrote.
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Governor Walz responded by acknowledging the fraud concerns but criticized the federal government's approach.
"We’ll win the fight against the fraudsters, but the political gamesmanship we’re seeing from Republicans is only making that fight harder," Walz said, per The New York Post. He expressed frustration over the federal response while noting that trust must be restored in order to effectively deliver social services.
Previous investigations and ongoing scrutiny of Minnesota
Minnesota has faced heightened scrutiny in recent years, particularly regarding its use of federal funds and alleged links to illegal immigration.
The state has seen a significant increase in the number of illegal immigrants over the past few years, with the Pew Research Center estimating around 130,000 undocumented immigrants residing in Minnesota by 2023.
Additionally, the state has been involved in investigations into large-scale fraud schemes involving nonprofits tied to the Somali community in the Twin Cities.
In 2019, approximately 90,000 illegal immigrants were living in Minnesota, a number that increased by 2023, when it reached around 2% of the state's population. The U.S. Department of Justice recently secured around $250 million from a fraud operation that misused public funds.
This case, involving a Somali-linked organization called Feeding Our Future, highlighted how funds were allegedly diverted to purchase luxury cars and real estate. The ongoing investigation into these matters has put further pressure on the state government as it navigates both the federal freeze and scrutiny from various law enforcement agencies.