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Trump Halts Federal Payments to Sanctuary Cities from Feb 1

President Trump's administration will end federal payments to sanctuary cities and states from Feb 1, linking the move to combat fraud and criminal protection in areas like Minnesota.

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Trump halts sanctuary city payments, links move to fraud allegations; Minnesota childcare funding also suspended

 

WASHINGTON (High Desert News Online) – President Trump said his administration will stop federal payments to sanctuary cities and states beginning Feb. 1, linking the move to alleged crime and fraud and saying HHS has paused some child-care funds amid legal challenges.

 

 

What the president announced

At the Detroit Economic Club, Trump framed the policy as protecting American families and taxpayer dollars. He said the federal government will no longer send money to places that shelter undocumented immigrants or refuse to help federal immigration agents — a message delivered in a speech to business leaders in Detroit.

Context: The remarks echo prior administration efforts to press local governments on immigration cooperation; the Department of Homeland Security previously published a list identifying more than 500 jurisdictions as non‑compliant, and the Justice Department has sued several cities and states over sanctuary policies.

 

Minnesota and child care fraud allegations

Trump singled out Minnesota, saying certain federal payments tied to suspected scammers operating child-care centers have been suspended. The administration alleges large-scale fraud in some child care and assistance programs. Officials say investigations are ongoing.

HHS officials stated they paused funds to ensure federal money is used lawfully. HHS Deputy Secretary Jim O’Neill said, “Families who rely on childcare and family assistance programs deserve confidence that these resources are used lawfully and for their intended purpose.” (source).

 

Within days of the suspension, multiple states sued. On Jan. 9, U.S. District Judge Arun Subramanian issued a temporary order that blocked HHS from cutting off child care funds to the five named states while the court considers further briefing. The order did not decide the long-term legality of the pause.

State attorneys general contend the administration exceeded its authority by trying to end funding Congress authorized; the administration argues it must prevent misuse of federal dollars — a dispute likely to proceed through the courts and take weeks or months to resolve (Fox News coverage).

 

How enforcement could work

Trump tied the policy to existing administrative tools rather than a new congressional statute. That includes adding jurisdictions to non-compliance lists, changing grant rules, and using HHS authority to pause funds when officials suspect fraud.

Officials say enforcement will target programs where the federal government directly provides funds or sets conditions for their use, potentially affecting child care subsidies and county‑administered social services (report).

 

Responses from states and local leaders

Leaders in the named states pushed back, arguing the federal government cannot simply strip lawfully authorized funds based on policy disagreements (coverage).

At the same time, some local officials and providers say they want any fraud fully investigated and prosecuted. Local law enforcement and child-care providers have stressed oversight and fraud prevention are important, while warning that broad funding cuts could harm vulnerable children and low‑income families (report).

 

Why this matters to taxpayers and families

The administration frames the move as protecting taxpayers and stopping fraud, but critics warn that cutting funds can punish needy families who rely on child care and basic services. The outcome of court battles will determine whether states continue to receive funding while investigations proceed (analysis).

 

Implications for The High Desert, California

The High Desert — including Victorville, Hesperia, Apple Valley and Barstow — depends on a mix of state and federal funding for child care subsidies, nutrition programs and county‑administered social services. If federal payments to California or programs routed through San Bernardino County were reduced or delayed, families could see cuts or slower support.

 

Economic impact

Local families could face reduced child‐care assistance and social services. Community groups and faith‑based organizations may see increased demand as parents scramble for care.

 

Budget and county services

San Bernardino County administers many federal programs. A sudden pause in grants or reimbursements could force the county to shift funds, trim services or tap reserves. Local agencies must weigh whether to continue services while awaiting court rulings and federal guidance.

 

Public safety and community trust

Trump tied sanctuary policies to crime. Local public‑safety officials must balance cooperation with federal authorities and community trust; changes could affect policing priorities and relationships with immigrant communities, which influences crime reporting and investigations.

 

Practical effects on families

Many High Desert families rely on subsidized child care to work. Even a temporary pause in child care funding could force parents to reduce work hours, increase demand on community groups, and stress schools and employers.

 

What local leaders can do

County supervisors, city leaders and service providers should monitor federal guidance, coordinate with state agencies, document anti‑fraud oversight steps, and prepare contingency plans to maintain care for vulnerable families if funding is delayed or cut (guidance).

 

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Hanna Crosby

Hanna Crosby is a senior business and finance analyst for Times Media Service, based in the Washington bureau. Crosby covers business and finance, including fiscal policy, the economy and how economic decisions affect communities. Crosby holds a master's degree in mass communication and grew up in Northridge, California.

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