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 companies 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 mentioned they’ve acquired no formal discover and argued the president is utilizing unsubstantiated claims to justify a transfer that would jeopardize youngster care and social companies for low-income households.
How we obtained right here
Trump posted on his social media website Fact Social on Tuesday that beneath Newsom, California is “extra corrupt than Minnesota, if that’s potential???” Within the publish, 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 mentioned his Division of Well being and Human Providers will freeze taxpayer funding from the Little one Care Improvement Fund, the Non permanent Help for Needy Households program, which is called CalWORKS in California, and the Social Providers Block Grant program. Well being and Human Providers mentioned the affected states are California, Colorado, Illinois, Minnesota and New York.
“For too lengthy, Democrat-led states and Governors have been complicit in permitting huge quantities of fraud to happen beneath their watch,” mentioned Andrew Nixon, a division spokesperson. “Underneath the Trump Administration, we’re making certain that federal taxpayer {dollars} are getting used for legit functions. We’ll guarantee these states are following the regulation 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 Little one Care and Improvement Fund after a sequence 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 on these companies 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, mentioned in a press release. “That is 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 dismissed Trump’s publish about fraud allegations, calling the president “a deranged, recurring liar whose relationship with actuality ended years in the past.” Newsom himself mentioned he welcomes federal fraud investigations within the state, including in an interview on MS NOW that aired Monday night time: “Carry it on. … If he has some distinctive perception and knowledge, I stay up for partnering with him. I can’t stand fraud.”
Nevertheless, Newsom mentioned slicing off funding hurts hardworking households who depend on the help.
“You need to help households? You imagine in households? Then you definately imagine in supporting youngster care and child-care staff within the workforce,” Newsom instructed MS NOW.
California has not been notified of any adjustments to federal child-care or social companies funding. H.D. Palmer, a spokesperson for the Division of Finance, mentioned the one indication from Washington that California’s child-care funding might be in jeopardy was the obscure 5 a.m. publish Tuesday by the president on Fact Social.
“The president tosses these social media missives in the identical method Mardi Gras revelers throw beads on Bourbon Road — with zero regard for accuracy or precision,” Palmer mentioned.
Within the present state finances, Palmer mentioned, California’s child-care spending is $7.3 billion, of which $2.2 billion is federal {dollars}. Newsom is ready to unveil his finances proposal Friday for the fiscal yr that begins July 1, which is able to mark the governor’s last 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 mentioned whereas particulars concerning the potential risk to federal child-care {dollars} stay unclear, what is thought is that federal {dollars} are usually not like “a spigot that will probably be turned off by the top of the week.”
“There is no such thing as a instant cutoff that can occur,” Palmer mentioned.
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 companies by no means delivered and diverting cash for private use.
The dimensions of the fraud has drawn nationwide consideration and fueled the Trump administration’s choice to freeze child-care funds whereas demanding further safeguards earlier than doling out cash, strikes that critics say threat 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 website 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 staff will probably be touring to California subsequent week to point out “how legal California fraud is robbing our nation blind.”
California officers have acknowledged fraud failures up to now, most notably on the Employment Improvement Division throughout the COVID-19 pandemic, when weakened safeguards led to billions of {dollars} in unemployment funds later deemed probably fraudulent.
An impartial state audit launched final month discovered administrative vulnerabilities in a few of California’s social companies 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 listing due to persistent errors in calculating CalFresh advantages, which gives meals help to these in want — a measure of cost accuracy reasonably than legal exercise — warning that federal regulation adjustments might ultimately pressure the state to soak up billions of {dollars} in further prices if these errors are usually not diminished.
What’s at stake in California
The Trump administration’s plans to freeze federal child-care, welfare and social companies 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 companies packages within the 5 states.
The transfer was rapidly 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) mentioned in a press release. “He says it’s due to ‘fraud,’ but it surely has nothing to do with fraud and every part to do with politics. Florida had the most important Medicaid fraud in U.S. historical past but isn’t on this listing.”
Added California Meeting Speaker Robert Rivas (D-Hollister): “It’s unconscionable for Trump and Republicans to tear away billions of {dollars} that help 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’ll proceed to battle again.”
Occasions employees author Daniel Miller contributed to this report.
