Washington: The Donald Trump administration has announced plans to freeze $10 billion in federal funding to five Democratic states-Minnesota, California, New York, Illinois, and Colorado-amid allegations of welfare fraud. The funding freeze affects programs such as child care subsidies, social services, and cash support for low-income families, with claims of widespread fraud cited but not evidenced.

According to Namibia Press Agency, the decision follows the uncovering of a major welfare fraud scheme in Minnesota, which prompted the funding halt. The New York Times reported that this pause could jeopardize programs serving hundreds of thousands of low-income households in the affected states.

The move comes on the heels of a recent freeze of $185 million in federal funding to Minnesota, announced after a series of alleged fraud schemes there. Deputy Secretary of Health and Human Services (HHS) Jim O'Neill stated on social media platform X that child care payments to Minnesota have been halted, citing serious allegations of taxpayer dollars being funneled to fraudulent daycares over the past decade.

In response to the situation, Minnesota Governor Tim Walz has accused the Trump administration of politicizing the issue. Walz announced on Monday that he will not seek a third term, as the welfare-fraud scandal in Minnesota continues to escalate. He emphasized that the fraud allegations have largely targeted the Somali community in the state.

Governor Walz criticized the President for demonizing Somali residents and wrongfully seizing funds that many Minnesotans depend on, calling the actions "disgusting and dangerous." Meanwhile, the HHS has announced new requirements for child care payments nationwide.