President Donald Trump announced Tuesday that federal authorities have opened an investigation into alleged fraud in California’s social programs, expanding a broader crackdown that began after a major welfare fraud case in Minnesota. In a post on Truth Social, Trump said the federal probe into California was underway and criticized the state’s leadership, including Gov. Gavin Newsom. The president did not provide details about the scope of the investigation or which agencies are leading the effort.
The announcement comes shortly after the administration froze federal childcare payments to Minnesota amid allegations that operators of several daycare and healthcare programs fraudulently obtained billions of dollars in public funds. Federal officials say the move is part of a wider effort to identify and prevent misuse of taxpayer-funded social programs.
U.S. Department of Health and Human Services Deputy Secretary Jim O’Neill said the agency has suspended certain payments to Minnesota and introduced new nationwide verification requirements for childcare funding. Under the measures, states must now provide documentation such as receipts or photographic evidence before federal funds are released. Authorities have also launched a fraud-reporting hotline through ChildCare.gov and begun audits of facilities flagged in recent investigations. Meanwhile, agents with Homeland Security Investigations conducted operations in Minneapolis targeting businesses suspected of laundering welfare funds through fraudulent childcare programs. Officials say the investigation remains ongoing as federal agencies review potential fraud in other states.
