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Trump Admin Slashes $10 Billion in Funding for Social Programs in Five Democratic-Led States

HeadlineJan 07, 2026

The Trump administration is slashing $10 billion in funding for social programs for families with children in five Democratic-led states. Trump officials have claimed the move is due to alleged fraud concerns amid the recent scandal in Minnesota involving fraud at child care facilities. But Democratic lawmakers have condemned this as an act of political retribution. The five targeted states are California, Colorado, Illinois, Minnesota and New York. Among the impacted programs are the Child Care and Development Fund, which subsidizes daycare for low-income households, and assistance for parents living in poverty to receive cash aid for diapers and other needs and to attend job training. The group Fair Share America said in a statement, “Rather than an isolated decision, this is part of a clear and dangerous pattern.”

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