Politics
What Trump’s vow to withhold federal child-care funding means in California
SACRAMENTO — 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.
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.
“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.
“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.
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.
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.”
Times staff writer Daniel Miller contributed to this report.
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Politics
Navy Under Secretary Hung Cao says personnel discharged over vaccine mandate were ‘failed’
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The Department of the Navy issued an apology letter Friday to former military personnel “unjustly removed” from service because of the COVID vaccine mandate during the Biden administration.
Under Secretary of the Navy Hung Cao emphasized that the Department of War is committed to “righting past wrongs” and welcoming back former service members who were dismissed during the pandemic.
“To the sailors and marines who were wrongfully discharged during COVID, we failed you,” Hung said in a video posted on X. “We will never allow this to happen again, not on my watch. We are ready for you to come back, and we want to correct your records.”
Cao, the Department of the Navy’s chief operating and chief management officer, overseeing roughly one million Navy, Marine Corps and civilian personnel, acknowledged the impact of the mandate on those it forced out.
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Under Secretary of the Navy Hung Cao appeared in a video discussing the Navy’s apology letter to former service members. (U.S. Navy)
“We are righting this wrong and it starts with this formal letter of apology,” he said.
President Donald Trump signed Executive Order 14184 shortly after returning to office last January, directing federal agencies to identify service members affected by the former vaccine requirement and take steps to reinstate them or restore certain benefits.
The order applies to former members of the Army, Air Force, Marine Corps, Navy, Space Force and Coast Guard who were discharged solely for refusing the COVID-19 vaccine.
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Secretary of War Pete Hegseth said the Pentagon is reviewing discharges tied to the COVID-19 vaccine mandate and working to correct military records. (Aaron Schwartz/CNP/Bloomberg via Getty Images)
The former secretary of defense mandated in 2021 that all service members receive the COVID-19 vaccine, a policy that was rescinded in 2023.
“The military unjustly discharged those who refused the vaccine, regardless of the years of service given to our Nation, after failing to grant many of them an exemption that they should have received,” Trump’s executive order states.
The Department of War issued guidance to all the secretaries of military departments to contact former service members with information about potential reinstatement and to correct their discharge records.
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President Donald Trump signed an executive order in January 2025, directing the review of military discharges tied to the COVID-19 vaccine mandate. (Al Drago/Reuters)
According to the Department of Veterans Affairs, more than 8,000 service members were separated after the Biden administration’s Department of Defense issued the vaccination mandate.
“It is unconscionable that thousands of former Service members who held true to their personal and religious convictions were not just separated, but separated with general (under honorable conditions), rather than honorable, discharge characterizations,” Secretary of War Pete Hegseth said in a December memo. “While many have applied for and received relief from our Military Department review boards, I believe the onus is on us to make this right.”
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Under Secretary of the Navy Hung Cao acknowledged the impact of the COVID-19 vaccine mandate on service members dismissed from the military. (U.S. Navy)
Hegseth said he directed a proactive review of personnel records to identify individuals involuntarily discharged solely for refusing the COVID-19 vaccine and facilitate appropriate discharge upgrades.
Fox News Digital has reached out to the Navy for additional information.
Politics
Justice Department drops demand for records naming transgender kids treated at Children’s Hospital L.A.
The U.S. Department of Justice has agreed to stop demanding medical records that identify young patients who received gender-affirming care from Children’s Hospital Los Angeles, ending a legal standoff with families who sued to block a subpoena that some feared would be used to criminally prosecute the parents of transgender kids.
The agreement, filed in federal court Thursday, allows the hospital to withhold certain records and redact personal information from others who underwent gender-affirming treatments, which Trump administration officials have compared to child mutilation despite support for such care by the nation’s major medical associations.
Several parents of CHLA patients expressed profound relief Friday, while also acknowledging that other threats to their families remain.
Jesse Thorn, the father of two transgender children who had been patients at Children’s Hospital, said hospital officials have ignored his requests for information as to whether they had already shared his kids’ data with the Trump administration, which had been scary. Hearing they had not, and now won’t, provided “two-fold” relief, he said.
“The escalations have been so relentless in the threats to our family, and one of the things that compounded that was the uncertainty about what the federal government knew about our kids’ medical care and what they were going to do about that,” he said.
Less clear is whether the agreement provides any new protections for doctors and other hospital personnel who provided care at the clinic and have also been targeted by the Trump administration.
The agreement follows similar victories for families seeking to block such disclosures by gender-affirming care clinics elsewhere in the country, including a ruling Thursday for the families of transgender kids who received treatment at Children’s National Hospital in Washington, D.C.
“What’s unique here is this was a class action,” said Alejandra Caraballo, a civil rights attorney and legal instructor at Harvard, who was not involved in the Los Angeles case. “I can’t undersell what a major win that is to protect the records of all these patients.”
Some litigation remains ongoing, with families fearful appeals to higher courts could end with different results. There is also Republican-backed legislation moving through Congress to restrict gender-affirming care for youths.
Another father of a transgender patient at Children’s Hospital, who requested anonymity because he fears for his child’s safety, said he was grateful for the agreement, but doesn’t see it as the end of the road. He fears the Trump administration could renew its subpoena if it wins on appeal in cases elsewhere.
“There’s some comfort, but it doesn’t close the book on it,” he said.
In a statement to The Times, the Justice Department said it “has not withdrawn its subpoena. Rather, it withdrew three requests for patient records based on the subpoenaed entity’s representation that it did not have custody of any such records.”
“This settlement avoids needless litigation based on that fact and further instructs Children’s Hospital Los Angeles to redact patient information in documents responsive to other subpoena requests,” the DOJ statement said. “As Attorney General Bondi has made clear, we will continue to use every legal and law enforcement tool available to protect innocent children from being mutilated under the guise of ‘care.’”
Children’s Hospital did not respond to a request for comment.
“This is a massive victory for every family that refused to be intimidated into backing down,” Khadijah Silver, director of Gender Justice & Health Equity at Lawyers for Good Government, which helped bring the lawsuit, said in a statement Friday. “The government’s attempt to rifle through children’s medical records was unconstitutional from the start. Today’s settlement affirms what we’ve said all along: these families have done nothing wrong, and their children’s privacy deserves protection.”
Until last summer, the Center for Transyouth Health and Development at Children’s Hospital Los Angeles was among the largest and oldest pediatric gender clinics in the United States — and one of few providing puberty blockers, hormones and surgical procedures for trans youth on public insurance.
It was also among the first programs to shutter under coordinated, multi-agency pressure exerted from the White House. Ending treatment for transgender children has been a central policy goal for the Trump administration since the president resumed office last year.
“These threats are no longer theoretical,” Children’s Hospital executives wrote to staff in an internal email announcing the closure of the clinic in June. “[They are] threatening our ability to serve the hundreds of thousands of patients who depend on CHLA for lifesaving care.”
In July, Atty. Gen. Pam Bondi announced the Justice Department was subpoenaing patient records from gender-affirming care providers, specifically stating that medical professionals were a target of a probe into “organizations that mutilated children in the service of a warped ideology.”
California law explicitly protects gender-affirming care, and the state and others led by Democrats have fought back in court, but most providers nationwide have shuttered under the White House push, stirring fear of a de facto ban.
Parents feared the subpoenas could lead to child abuse charges, which the government could then use to strip them of custody of their children. Doctors feared they could be arrested and imprisoned for providing medical care that is broadly backed by the medical establishment and is legal in the states where they performed it.
The Justice Department’s subpoena to Children’s Hospital Los Angeles had initially requested a vast array of personally identifying documents, specially calling for records “sufficient to identify each patient [by name, date of birth, social security number, address, and parent/guardian information] who was prescribed puberty blockers or hormone therapy.”
It also called for records “relating to the clinical indications, diagnoses, or assessments that formed the basis for prescribing puberty blockers or hormone therapy,” and for records “relating to informed consent, patient intake, and parent or guardian authorization for minor patients” to receive gender-affirming care.
According to the new agreement, the Justice Department withdrew its requests for those specific records — which had yet to be produced by the hospital — on Dec. 8, and told Children’s Hospital to redact the personally identifying information of patients in other records it was still demanding.
Thursday’s agreement formalizes that position, and requires the Justice Department to return or destroy any records that provide personally identifying information moving forward.
“The Government will not use this patient identifying information to support any investigation or prosecution,” the agreement states.
According to the attorneys for the families who sued, the settlement protects the records of their clients but also all of the clinic’s other gender-affirming care patients. “To date, they assured us, no identifiable patient information has been received, and now it cannot be,” said Amy Powell, with Lawyers for Good Government.
Cori Racela, executive director for Western Center on Law & Poverty, called it a “crucial affirmation that healthcare decisions belong in exam rooms, not government subpoenas.”
“Youth, families, and medical providers have constitutional rights to privacy and dignity,” she said in a statement. “No one’s private health records should be turned into political ammunition — especially children.”
The agreement was also welcomed by families of transgender kids beyond Southern California.
“This has been hanging over those families specifically in L.A., of course, but for all families,” said Arne Johnson, a Bay Area father of a transgender child who helps run a group of similar families called Rainbow Families Action. “Every time one of these subpoenas goes out, it’s terrifying.”
Johnson said each victory pushing back against the government’s demands for family medical records feels “like somebody is pointing a gun at your kid and a hero comes along and knocks it out of their hand — it’s literally that visceral of a feeling.”
Johnson said he hopes recent court wins will push hospitals to resist canceling care for transgender children.
“Parents are the ones that are fighting back and they’re the ones that are winning, and the hospitals should take their lead,” he said. “Hospitals should be fighting in the same way the parents are, so that their doctors and other providers can be protected.”
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