Overview
- HHS froze or conditioned about $10 billion for California, Colorado, Illinois, Minnesota, and New York, affecting TANF ($7.35 billion), the Child Care and Development Fund ($2.4 billion), and the Social Services Block Grant ($869 million).
- The department is requiring states to provide receipts and photo evidence for child-care payments and to submit expanded documentation before disbursements.
- The White House says nine federal agencies are engaged in Minnesota probes; DOJ reports 98 defendants charged with 64 convictions, and DHS site visits in the Twin Cities flagged more than 1,300 potential issues.
- House Oversight opened hearings on Jan. 7 as Republicans point to loss estimates up to $9 billion that remain under investigation and are disputed by Minnesota officials.
- Democratic governors denounced the action and signaled court challenges, while providers and families in states such as Illinois report confusion and potential service disruptions.