Overview
- California, Colorado, Illinois, Minnesota, and New York filed suit in federal court in Manhattan to block the Health and Human Services freeze, calling it unconstitutional and unsupported by evidence.
- The pause covers roughly $7.3 billion in TANF, about $2.4 billion in the Child Care and Development Fund, and approximately $869 million in Social Services Block Grants, with HHS demanding extensive records from the states within 14 days.
- The White House announced a new Justice Department fraud enforcement division and a Senate-confirmed assistant attorney general role to lead a nationwide crackdown beginning in Minnesota, with a nominee expected soon.
- Federal authorities have surged resources to Minnesota, with DOJ reporting more than 1,750 subpoenas, over 130 search warrants, 98 defendants charged, and dozens of convictions across programs including child nutrition, housing, and autism services.
- Prosecutors say suspected fraud in Minnesota social programs could reach about $9 billion, a figure the state disputes, as oversight hearings continue in Congress and political pressure on state leaders intensifies.