Overview
- California, Colorado, Illinois, Minnesota and New York filed suit in federal court to block HHS from withholding more than $10 billion in TANF, child-care and social services funds.
- HHS said it restricted payments over suspected misuse and potential benefits to ineligible immigrants, demanding extensive documentation from the states within 14 days.
- The White House announced a new Justice Department fraud division and a Senate-confirmed assistant attorney general role to coordinate nationwide probes starting in Minnesota.
- Prosecutors estimate suspected fraud tied to Minnesota social programs could reach about $9 billion, with roughly 98 defendants charged since 2021 and many convictions.
- House Oversight held hearings on the Minnesota cases as Republican leaders intensified pressure on Gov. Tim Walz, who has disputed the $9 billion figure.