The Trump administration sent out letters Tuesday night to five blue states, freezing about $10 billion in funding for child care and social services programs pending a “thorough review,” citing concerns over “systemic fraud.”

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Where it stands: The letters, viewed by Axios, went to California, Colorado, Minnesota, Illinois and New York — suspending about $10 billion in funds for three programs:

• TANF, or Temporary Assistance for Needy Families, cash assistance that is the modern-day successor to welfare.
• Child Care Development Fund money that subsidizes child care programs in these states.
• SSBG, Social Services Block Grants, which fund child welfare services, like foster care.

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• The letters say that “the Administration for Children and Families (ACF) is concerned by the potential for” extensive and systemic fraud.
• “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,” reads the letter to Illinois.
• “Additionally, ACF has reason to believe that the State of Illinois is illicitly providing illegal aliens with CCDF benefits intended for American citizens and lawful permanent residents.”
• The letter to California, says that the state “will be placed on a temporary restricted drawdown for all SSBG funds provided by ACF until further notice, pending successful and satisfactory review of the requested information.”

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