SACRAMENTO — Gov. Gavin Newsom and different state Democratic leaders accused President Trump of unleashing a political vendetta after he introduced plans to freeze roughly $10 billion in federal funding for youngster care and social providers packages in California and 4 different Democrat-controlled states.
Trump justified the motion in feedback posted on his social media platform Fact Social, the place he accused Newsom of widespread fraud. The governor’s workplace dismissed the accusation as “deranged.”
Trump’s announcement got here amid a broader administration push to focus on Democratic-led states over alleged fraud in taxpayer-funded packages, following sweeping prosecutions in Minnesota. The U.S. Division of Well being and Human Providers confirmed the deliberate funding freeze, which was first reported by the New York Submit.
California officers stated they’ve obtained no formal discover and argued the president is utilizing unsubstantiated claims to justify a transfer that might jeopardize youngster care and social providers for low-income households.
How we bought right here
Trump posted on his social media web site Fact Social on Tuesday that underneath Newsom, California is “extra corrupt than Minnesota, if that’s doable???” Within the put up, Trump used a derogatory nickname for Newsom that has turn out to be well-liked with the governor’s critics, referring to him as “Newscum.”
“The Fraud Investigation of California has begun,” Trump wrote.
The president additionally retweeted a narrative by the New York Submit that stated his Division of Well being and Human Providers will freeze taxpayer funding from the Youngster Care Improvement Fund, the Non permanent Help for Needy Households program, which is named CalWORKS in California, and the Social Providers Block Grant program. Well being and Human Providers stated the affected states are California, Colorado, Illinois, Minnesota and New York.
“For too lengthy, Democrat-led states and Governors have been complicit in permitting large quantities of fraud to happen underneath their watch,” stated Andrew Nixon, a division spokesperson. “Beneath the Trump Administration, we’re guaranteeing that federal taxpayer {dollars} are getting used for respectable functions. We are going to guarantee these states are following the legislation and defending hard-earned taxpayer cash.”
The division introduced final month that each one 50 states should present further ranges of verification and administrative information earlier than they obtain extra funding from the Youngster Care and Improvement Fund after a collection of fraud schemes at Minnesota day-care facilities run by Somali residents.
“The Trump Administration is utilizing the ethical guise of eliminating ‘fraud and abuse’ to undermine important packages and punish households and youngsters who rely upon these providers to outlive, lots of whom haven’t any different choices if this funding disappears,” Kristin McGuire, president of Younger Invincibles, a young-adult nonprofit financial advocacy group, stated in an announcement. “That is yet one more ideologically motivated assault on states that treats thousands and thousands of households as pawns in a political sport.”
California pushes again
Newsom’s workplace disregarded Trump’s put up about fraud allegations, calling the president “a deranged, ordinary liar whose relationship with actuality ended years in the past.” Newsom himself stated he welcomes federal fraud investigations within the state, including in an interview on MS NOW that aired Monday evening: “Carry it on. … If he has some distinctive perception and data, I stay up for partnering with him. I can’t stand fraud.”
Nonetheless, Newsom stated slicing off funding hurts hardworking households who depend on the help.
“You wish to assist households? You consider in households? Then you definitely consider in supporting youngster care and child-care employees within the workforce,” Newsom instructed MS NOW.
California has not been notified of any adjustments to federal child-care or social providers funding. H.D. Palmer, a spokesperson for the Division of Finance, stated the one indication from Washington that California’s child-care funding might be in jeopardy was the obscure 5 a.m. put up Tuesday by the president on Fact Social.
“The president tosses these social media missives in the identical means Mardi Gras revelers throw beads on Bourbon Avenue — with zero regard for accuracy or precision,” Palmer stated.
Within the present state funds, Palmer stated, California’s child-care spending is $7.3 billion, of which $2.2 billion is federal {dollars}. Newsom is ready to unveil his funds proposal Friday for the fiscal 12 months that begins July 1, which can mark the governor’s ultimate spending plan earlier than he phrases out. Newsom has acknowledged that he’s contemplating a 2028 bid for president, however has repeatedly brushed apart reporters’ questions on it, saying his focus stays on governing California.
Palmer stated whereas particulars in regards to the potential risk to federal child-care {dollars} stay unclear, what is understood is that federal {dollars} aren’t like “a spigot that will probably be turned off by the top of the week.”
“There is no such thing as a rapid cutoff that may occur,” Palmer stated.
Since Trump took workplace, California has filed dozens of authorized actions to dam the president’s coverage adjustments and funding cuts, and the state has prevailed in lots of them.
What occurred in Minnesota
Federal prosecutors say Minnesota has been hit by a number of the largest fraud schemes involving state-run, federally funded packages within the nation. Federal prosecutors estimate that as a lot as half of roughly $18 billion paid to 14 Minnesota packages since 2018 could also be fraudulent, with suppliers accused of billing for providers by no means delivered and diverting cash for private use.
The size of the fraud has drawn nationwide consideration and fueled the Trump administration’s determination to freeze child-care funds whereas demanding further safeguards earlier than doling out cash, strikes that critics say danger harming households who depend on the packages. Gov. Tim Walz has ordered a third-party audit and appointed a director of program integrity. Amid the fallout, Walz introduced he won’t search a 3rd time period.
Outrage over the fraud reached a fever pitch within the White Home after a video posted on-line by an influencer purported to show intensive fraud at Somali-run child-care facilities in Minnesota. On Monday, that influencer, Nick Shirley, posted on the social media web site X, “I ENDED TIM WALZ,” a declare that prompted calls from conservative activists to shift scrutiny to Newsom and California subsequent.
Proper-wing podcaster Benny Johnson posted on X that his workforce will probably be touring to California subsequent week to indicate “how prison California fraud is robbing our nation blind.”
California officers have acknowledged fraud failures up to now, most notably on the Employment Improvement Division through the COVID-19 pandemic, when weakened safeguards led to billions of {dollars} in unemployment funds later deemed doubtlessly fraudulent.
An unbiased state audit launched final month discovered administrative vulnerabilities in a few of California’s social providers packages however stopped in need of alleging widespread fraud or corruption. The California state auditor added the Division of Social Providers to its high-risk record due to persistent errors in calculating CalFresh advantages, which gives meals help to these in want — a measure of cost accuracy fairly than prison exercise — warning that federal legislation adjustments might finally power the state to soak up billions of {dollars} in further prices if these errors aren’t diminished.
What’s at stake in California
The Trump administration’s plans to freeze federal child-care, welfare and social providers funding would have an effect on $7.3 billion in Non permanent Help for Needy Households funding, $2.4 billion for child-care subsidies and greater than $800 million for social providers packages within the 5 states.
The transfer was shortly criticized as politically motivated as a result of the focused states have been all Democrat-led.
“Trump is now illegally freezing childcare and different funding for working households, however solely in blue states,” state Sen. Scott Wiener (D-San Francisco) stated in an announcement. “He says it’s due to ‘fraud,’ nevertheless it has nothing to do with fraud and every part to do with politics. Florida had the biggest Medicaid fraud in U.S. historical past but isn’t on this record.”
Added California Meeting Speaker Robert Rivas (D-Hollister): “It’s unconscionable for Trump and Republicans to tear away billions of {dollars} that assist youngster care and households in want, and this has nothing to do with fraud. California taxpayers pay for these packages — interval — and Trump has no proper to steal from our hard-working residents. We are going to proceed to struggle again.”
Instances workers author Daniel Miller contributed to this report.
