Trump demands California hand over recipient lists as $10B paused amid fraud concerns

Donald Trump

Trump demands California hand over recipient lists as $10B paused amid fraud concerns

The administration is pausing over $10 billion to five Democratic states, citing concerns money was fraudulently given to noncitizens

Louis Casiano Fox News

Published

January 7, 2026 7:14pm EST

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The Trump administration is demanding California hand over a list of people and groups that receive taxpayer funds amid concerns the money was fraudulently funneled to noncitizens.

On Tuesday, the administration announced that it will pause more than $10 billion in funds to five Democratic-led states, including California, amid widespread claims of fraud.

In a series of letters to California Gov. Gavin Newsom, the Administration for Children and Families said the Department of Health and Human Services will halt taxpayer funding to the Child Care Development Fund (CCDF), the Temporary Assistance for Needy Families (TANF) program, and the Social Services Block Grant.

NEW YORK REPUBLICANS CALL FOR INDEPENDENT FRAUD INVESTIGATION FOLLOWING MINNESOTA REVELATIONS

California Gov. Gavin Newsom and President Donald Trump. The Trump administration this week announced a pause on more than $10 billion in childcare funds to five blue states. (Michael M. Santiago/Getty Images (left); Tasos Katopodis/Getty Images (right))

The letters asked Newsom for "verified attendance documentation" for subsidized child care services that include logs of hours and payment info from providers, the New York Post reported.

The letter from TANF asked for recipients’ names, addresses, social security numbers and dates of birth.

"These concerns have been heightened by recent federal prosecutions and additional allegations that substantial portions of federal resources were fraudulently diverted away from the American families they were intended to assist," ACS Assistant Secretary Alex J. Adams said in the letters, according to the post.

GOP LAWMAKER DEMANDS MINNESOTA FRAUD BE TREATED AS 'ORGANIZED CRIME' SCHEME

Quality Learning Center sign being corrected

Quality Learning Center in Minnesota was found at the center of an alleged childcare fraud scandal in the state. (Madelin Fuerste / Fox News Channel)

"Additionally, ACF has reason to believe that the State of California is illicitly providing illegal aliens with CCDF benefits intended for American citizens and lawful permanent residents," he added.

More than $7.3 billion in TANF funding would be withheld from the five states – California, Colorado, Illinois, Minnesota and New York — along with nearly $2.4 billion from the CCDF and another $869 million from the Social Services Block Grant.

President Donald Trump has been highly critical of California, as well as Newsom.

"California, under Governor Gavin Newscum, is more corrupt than Minnesota, if that’s possible??? The Fraud Investigation of California has begun. Thank you for your attention to this matter!" he wrote Tuesday on Truth Social.

The pause came amid heavy scrutiny of Minnesota's massive welfare assistance fraud scandal.

Republican lawmaker grills witness on Somali community role in Minnesota fraud allegations

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More than 90 people — most from Minnesota's large Somali community — have been charged since 2022 in what has been described as the nation's largest COVID-era scheme.

How much money has been stolen through alleged money laundering operations involving fraudulent meal and housing programs, daycare centers and Medicaid services is still being tabulated. But the U.S. attorney in Minnesota said the scope of the fraud could exceed $1 billion and rise to as high as $9 billion.

Fox News Digital has reached out to Newsom's office for comment.

Fox News Digital's Greg Wehner contributed to this report.

Louis Casiano is a reporter for Fox News Digital. Story tips can be sent to louis.casiano@fox.com.

Trump demands California hand over recipient lists as $10B paused amid fraud concerns