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What Trump’s vow to withhold federal child-care funding means in California

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What Trump’s vow to withhold federal child-care funding means in California

Gov. Gavin Newsom and other state Democratic leaders accused President Trump of unleashing a political vendetta after he announced plans to freeze roughly $10 billion in federal funding for child care and social services programs in California and four other Democrat-controlled states.

Trump justified the action in comments posted on his social media platform Truth Social, where he accused Newsom of widespread fraud. The governor’s office dismissed the accusation as “deranged.”

Trump’s announcement came amid a broader administration push to target Democratic-led states over alleged fraud in taxpayer-funded programs, following sweeping prosecutions in Minnesota. The U.S. Department of Health and Human Services confirmed the planned funding freeze, which was first reported by the New York Post.

California officials said they have received no formal notice and argued the president is using unsubstantiated claims to justify a move that could jeopardize child care and social services for low-income families.

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How we got here

Trump posted on his social media site Truth Social on Tuesday that under Newsom, California is “more corrupt than Minnesota, if that’s possible???” In the post, Trump used a derogatory nickname for Newsom that has become popular with the governor’s critics, referring to him as “Newscum.”

“The Fraud Investigation of California has begun,” Trump wrote.

The president also retweeted a story by the New York Post that said his Department of Health and Human Services will freeze taxpayer funding from the Child Care Development Fund, the Temporary Assistance for Needy Families program, which is known as CalWORKS in California, and the Social Services Block Grant program. Health and Human Services said the affected states are California, Colorado, Illinois, Minnesota and New York.

“For too long, Democrat-led states and Governors have been complicit in allowing massive amounts of fraud to occur under their watch,” said Andrew Nixon, a department spokesperson. “Under the Trump Administration, we are ensuring that federal taxpayer dollars are being used for legitimate purposes. We will ensure these states are following the law and protecting hard-earned taxpayer money.”

The department announced last month that all 50 states will have to provide additional levels of verification and administrative data before they receive more funding from the Child Care and Development Fund after a series of fraud schemes at Minnesota day-care centers run by Somali residents.

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“The Trump Administration is using the moral guise of eliminating ‘fraud and abuse’ to undermine essential programs and punish families and children who depend on these services to survive, many of whom have no other options if this funding disappears,” Kristin McGuire, president of Young Invincibles, a young-adult nonprofit economic advocacy group, said in a statement. “This is yet another ideologically motivated attack on states that treats millions of families as pawns in a political game.”

California pushes back

Newsom’s office brushed off Trump’s post about fraud allegations, calling the president “a deranged, habitual liar whose relationship with reality ended years ago.” Newsom himself said he welcomes federal fraud investigations in the state, adding in an interview on MS NOW that aired Monday night: “Bring it on. … If he has some unique insight and information, I look forward to partnering with him. I can’t stand fraud.”

However, Newsom said cutting off funding hurts hardworking families who rely on the assistance.

“You want to support families? You believe in families? Then you believe in supporting child care and child-care workers in the workforce,” Newsom told MS NOW.

California has not been notified of any changes to federal child-care or social services funding. H.D. Palmer, a spokesperson for the Department of Finance, said the only indication from Washington that California’s child-care funding could be in jeopardy was the vague 5 a.m. post Tuesday by the president on Truth Social.

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“The president tosses these social media missives in the same way Mardi Gras revelers throw beads on Bourbon Street — with zero regard for accuracy or precision,” Palmer said.

In the current state budget, Palmer said, California’s child-care spending is $7.3 billion, of which $2.2 billion is federal dollars. Newsom is set to unveil his budget proposal Friday for the fiscal year that begins July 1, which will mark the governor’s final spending plan before he terms out. Newsom has acknowledged that he is considering a 2028 bid for president, but has repeatedly brushed aside reporters’ questions about it, saying his focus remains on governing California.

Palmer said while details about the potential threat to federal child-care dollars remain unclear, what is known is that federal dollars are not like “a spigot that will be turned off by the end of the week.”

“There is no immediate cutoff that will happen,” Palmer said.

Since Trump took office, California has filed dozens of legal actions to block the president’s policy changes and funding cuts, and the state has prevailed in many of them.

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What happened in Minnesota

Federal prosecutors say Minnesota has been hit by some of the largest fraud schemes involving state-run, federally funded programs in the country. Federal prosecutors estimate that as much as half of roughly $18 billion paid to 14 Minnesota programs since 2018 may be fraudulent, with providers accused of billing for services never delivered and diverting money for personal use.

The scale of the fraud has drawn national attention and fueled the Trump administration’s decision to freeze child-care funds while demanding additional safeguards before doling out money, moves that critics say risk harming families who rely on the programs. Gov. Tim Walz has ordered a third-party audit and appointed a director of program integrity. Amid the fallout, Walz announced he will not seek a third term.

Outrage over the fraud reached a fever pitch in the White House after a video posted online by an influencer purported to expose extensive fraud at Somali-run child-care centers in Minnesota. On Monday, that influencer, Nick Shirley, posted on the social media site X, “I ENDED TIM WALZ,” a claim that prompted calls from conservative activists to shift scrutiny to Newsom and California next.

Right-wing podcaster Benny Johnson posted on X that his team will be traveling to California next week to show “how criminal California fraud is robbing our nation blind.”

California officials have acknowledged fraud failures in the past, most notably at the Employment Development Department during the COVID-19 pandemic, when weakened safeguards led to billions of dollars in unemployment payments later deemed potentially fraudulent.

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An independent state audit released last month found administrative vulnerabilities in some of California’s social services programs but stopped short of alleging widespread fraud or corruption. The California state auditor added the Department of Social Services to its high-risk list because of persistent errors in calculating CalFresh benefits, which provides food assistance to those in need — a measure of payment accuracy rather than criminal activity — warning that federal law changes could eventually force the state to absorb billions of dollars in additional costs if those errors are not reduced.

What’s at stake in California

The Trump administration’s plans to freeze federal child-care, welfare and social services funding would affect $7.3 billion in Temporary Assistance for Needy Families funding, $2.4 billion for child-care subsidies and more than $800 million for social services programs in the five states.

The move was quickly criticized as politically motivated because the targeted states were all Democrat-led.

“Trump is now illegally freezing childcare and other funding for working families, but only in blue states,” state Sen. Scott Wiener (D-San Francisco) said in a statement. “He says it’s because of ‘fraud,’ but it has nothing to do with fraud and everything to do with politics. Florida had the largest Medicaid fraud in U.S. history yet isn’t on this list.”

Added California Assembly Speaker Robert Rivas (D-Hollister): “It is unconscionable for Trump and Republicans to rip away billions of dollars that support child care and families in need, and this has nothing to do with fraud. California taxpayers pay for these programs — period — and Trump has no right to steal from our hard-working residents. We will continue to fight back.”

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Times staff writer Daniel Miller contributed to this report.

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EXCLUSIVE: ICE says El Paso detention facility will stay open under new contractor after $1.2B deal scrapped

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EXCLUSIVE: ICE says El Paso detention facility will stay open under new contractor after .2B deal scrapped

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EXCLUSIVE: Immigration and Customs Enforcement (ICE) said Camp East Montana in El Paso, Texas will remain open and is undergoing an operational upgrade, Fox News Digital has learned.

“Camp East Montana is NOT closing, quite the opposite,” an ICE spokesperson exclusively told Fox News Digital Tuesday.

“Rather, ICE has contracted with a new provider following Secretary Noem’s termination of the old contract inherited from the Department of War. ICE is always looking at ways to improve our detention facilities to ensure we are providing the best care to illegal aliens in our custody.”

Camp East Montana is photographed Friday, March 6, 2026, in El Paso, Texas. (Omar Ornelas/El Paso Times / USA TODAY NETWORK via Imagn Images)

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BLUE-STATE GOVERNORS MOVE TO KEEP HEAT ON NOEM AS DHS FIRES BACK

The spokesperson said the new contract will allow the facility to maintain what the agency described as the “highest detention standards” while expanding oversight.

According to ICE, the new contractor will also provide increased on-site medical care, additional staffing and a “PRECISE quality assurance surveillance plan.”

The agency said the updated agreement also strengthens ICE’s direct oversight of operations at the El Paso-area facility.

“Far from closing, Camp East Montana is upgrading,” the spokesperson said.

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El Paso immigration facility faces scrutiny but ICE says Camp East Montana is upgrading, not closing, after the $1.2 billion contract termination. (Omar Ornelas/El Paso Times / USA TODAY NETWORK via Imagn Images)

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The news that the facility will remain open comes after The Washington Post reported that the facility could face closure amid scrutiny over operations.

A document was distributed to ICE staff, the Post reports, indicated that the agency was drafting a letter to terminate the facility’s $1.2 billion contract at an unspecified date.

ICE officials, however, characterized the contract termination as a deliberate effort by Noem to raise standards and improve services.

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Camp East Montana is photographed Friday, March 6, 2026, in El Paso, Texas, as a bus enters the detention center.
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The facility, located at Fort Bliss in Texas, has been used to house thousands of detainees as part of the Trump administration’s immigration enforcement efforts.

ICE did not immediately provide details on the identity of the new contractor or the timeline for full implementation.

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War with Iran fuels Russian oil boom — and trouble for Ukraine

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War with Iran fuels Russian oil boom — and trouble for Ukraine

Russia is emerging as one of the few early economic beneficiaries of the war with Iran, as disruptions to energy infrastructure drive up demand for Russian exports and the world casts its gaze to the Middle East and away from Moscow’s war in Ukraine.

The U.S. and its European counterparts slapped severe sanctions on Russia in March 2022, barely a month into Russian President Vladimir Putin’s full-scale invasion of Ukraine. The effect was a stranglehold on Russia’s exports, depriving Putin’s war effort of at least $500 billion, experts say. But over the last week, as President Trump’s war in the Middle East choked energy markets worldwide, the White House began easing its restrictions on Moscow.

“It is traitorous conduct for you to help Russia,” California Rep. Ted Lieu (D-Torrance) said on X, demanding the Trump administration reverse course. “Russia is giving intelligence info to Iran that helps Iran target American forces.”

Crude droplets rained over Tehran after Israeli airstrikes decimated oil depots, draping the Iranian capital in a dense smog. Iranian counterattacks have also targeted refineries and oil fields in Saudi Arabia and Bahrain. Crude oil prices have surged, and traffic through the Strait of Hormuz has all but ceased, sending energy importers in search of alternate sources.

Those spikes are giving Russia, one of the world’s largest oil and gas exporters, a rare advantage. After spending a decade as the world’s most sanctioned nation over his aggression in Ukraine, Putin is finally starting to regain some leverage in global markets.

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“In the current economic situation, if we refocus now on those markets that need increased supplies, we can gain a foothold there,” Putin said at a meeting at the Kremlin on Monday, according to Russian state media. “It’s important for Russian energy companies to take advantage of the current situation.”

On March 4, the Treasury Department issued a temporary 30-day waiver allowing Indian refiners to purchase Russian oil. The appeal by the Trump administration was described as a way to ease demand for Mideast oil, but was criticized as a reversal of sanctions placed against Putin meant to deny him the capital needed to fund his occupation of eastern Ukraine.

Now, Moscow is poised to press that advantage further, after Trump said Monday he will further lift sanctions on oil-producing countries to ease the trade friction and reintroduce additional oil and gas supplies. The only countries with U.S. oil sanctions are Russia, Iran and Venezuela.

“So, we have sanctions on some countries. We’re going to take those sanctions off until this straightens out,” Trump said at a news conference at his golf club in Doral, Fla. “Then, who knows, maybe we won’t have to put them on — they’ll be so much peace.”

The surprise concession to Moscow comes as reports suggest Russia is assisting Iran in targeting U.S. personnel.

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Trump’s announcement followed an unscheduled hourlong call with Putin about the situation in the Middle East.

The war has also set the stage for Russia to make gains in Ukraine, as hostilities draw the global spotlight away from Kyiv and its struggle to hold back the bigger Russian army. U.S.-brokered talks between the two adversaries have been sidelined as Washington shifts focus to its war in Iran.

“At the moment, the partners’ priority and all attention are focused on the situation around Iran,” Ukrainian President Volodymyr Zelensky said on X. “We see that the Russians are now trying to manipulate the situation in the Middle East and the Gulf region to the benefit of their aggression.”

Putin is unlikely to intervene militarily on Iran’s behalf, according to Robert English, an international foreign policy expert at USC. Instead, Putin is expected to play his position carefully, reap the economic rewards, and keep focused firmly on Ukraine at a time when key air defense systems are diverted from Ukraine to the Persian Gulf.

“Russia is winning the Iran-U.S.-Israel war, at least so far. Oil and natural gas prices have soared, filling Putin’s Ukraine war chest,” he said. “Russia is gathering forces for a big spring offensive in Eastern Ukraine, and it’s not even front-page news.”

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Ukraine has dispatched drone interceptors and ordered its anti-drone experts to pivot from their war with Russia to help Western allies help intercept Iranian attacks. Zelensky’s allegiance may not pay off, English said.

“When will Ukraine see the benefits of helping the U.S. with anti-drone technology? No time soon, apparently,” he said.

Even several weeks of interruption in Gulf energy supplies could bring the largest windfall to Russia, the Associated Press reported, citing energy analysts.

The economic turmoil caused by the war has exposed vulnerabilities in Europe’s energy system, particularly its lingering dependence on Russian fuel.

Despite sanctions, the European Union remains a major purchaser of Russian natural gas and crude oil. Russian gas accounted for approximately 19% of E.U. gas imports in 2025. Allied Europeans have agreed to completely stop importing Russian liquefied natural gas, oil and pipeline gas by late 2027.

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Putin expressed no desire Monday to rescue the European market now that U.S.-Israeli escalations and Iranian retaliation have choked oil production and shipping. The Russian president instead proposed to divert volumes away from the European market “to more promising areas” like the Asia-Pacific region, Slovakia and Hungary, which he said were “reliable counterparties.”

European leaders have been criticized for being “stunned, sidelined, and disunited” since hostilities began in late February. Excluded from the initial military planning by the U.S. and Israel, Europe entered the conflict with gas storage at only 30% capacity, the lowest levels in years. Instead of bold action, English said, European leaders have quarreled over internal divisions and rivalries.

“Sky-high energy prices are the underlying cause of many of these frictions, as Europe struggles now more than ever to find affordable alternatives to the cheap Russian petroleum,” English said.

Antonio Costa, president of the European Council, told European leaders in Brussels on Tuesday that rising energy prices and the world’s shifting attention risk strengthening the Kremlin at a critical moment in the war in Ukraine.

“So far, there is only one winner in this war,” Costa said. “Russia.”

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Trump stirs GOP primary drama with visit to Massie’s Kentucky home turf

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Trump stirs GOP primary drama with visit to Massie’s Kentucky home turf

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President Donald Trump is taking his feud with Rep. Thomas Massie, R-Ky., to the libertarian lawmaker’s home turf on Wednesday.

Trump is expected to hold an event in Hebron, Kentucky, on Wednesday, the Republican Party of Kentucky announced on social media Monday. It’s located in the northern part of the state’s 4th Congressional District, which Massie represents.

Massie’s primary rival, Ed Gallrein, will attend the Hebron event, his campaign confirmed to Fox News Digital on Tuesday, while deferring all other questions on the matter to the White House.

Massie himself will miss the event due to a previously scheduled official engagement, his spokesperson told Fox News Digital.

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KHANNA AND MASSIE THREATEN TO FORCE A VOTE ON IRAN AS PROSPECT OF US ATTACK LOOMS

President Donald Trump will be visiting Rep. Thomas Massie’s congressional district on Wednesday. (Win McNamee/Getty Images; Nathan Posner/Anadolu via Getty Images)

When asked about the visit, White House spokeswoman Liz Huston told Fox News Digital, “President Trump will visit the great states of Ohio and Kentucky on Wednesday to tout his economic victories and detail his Administration’s aggressive, ongoing efforts to lower prices and make America more affordable.”

The president has thrown his considerable influence behind Gallrein to unseat Massie after the GOP lawmaker publicly defied Trump on multiple occasions.

MASSIE, KHANNA TO VISIT DOJ TO REVIEW UNREDACTED EPSTEIN FILES

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Massie most recently was one of two House Republicans to vote to stop Trump’s joint operation in Iran with Israel, though the legislation was successfully blocked by the majority of GOP lawmakers and a handful of Democrats.

Ed Gallrein, left, seen with President Donald Trump in the Oval Office at the White House. (Ed Gallrein congressional campaign)

He was also one of two Republicans to vote against Trump’s “big, beautiful bill” last year.

Trump in turn has hurled a slew of personal attacks against Massie, including calling him “weak and pathetic” in a statement endorsing Gallrein in October.

“He only votes against the Republican Party, making life very easy for the Radical Left. Unlike ‘lightweight’ Massie, a totally ineffective LOSER who has failed us so badly, CAPTAIN ED GALLREIN IS A WINNER WHO WILL NOT LET YOU DOWN,” Trump posted on Truth Social at the time, one of numerous criticisms targeting the Kentucky Republican through the years.

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He called Massie the “worst Republican congressman” in July amid Massie’s bipartisan push to force the Department of Justice (DOJ) to release its files on Jeffrey Epstein.

Then-Rep. Marjorie Taylor Greene, a Republican from Georgia, Rep. Thomas Massie, a Republican from Kentucky, and Rep. Ro Khanna, a Democrat from California, during a news conference outside the U.S. Capitol in Washington, D.C., on Tuesday, Nov. 18, 2025. (Graeme Sloan/Bloomberg via Getty Images)

But Massie has so far appeared to defy political gravity despite making political enemies out of both Trump and House GOP leaders.

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He handily defeated multiple primary challengers in 2024 and 2022, despite public feuds with Trump, and has served his district since 2012.

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Gallrein is a retired Navy SEAL and farmer who launched his campaign days after Trump made his endorsement. Their primary election day is May 19.

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