The cuts to several states come amid an escalating fraud fallout fueled by a dubious YouTube investigation of Minnesota day cares.
The Trump administration on Monday said it had slashed billions in social services funds to a handful of blue states as part of its escalating response to new and unproven fraud allegations in Minnesota.
The Department of Health and Human Services will freeze $10 billion worth of federal grants to California, Colorado, Illinois, Minnesota, and New York, an HHS official told HuffPost, confirming news first reported by The New York Post.
It’s not clear whether the freeze was inspired by specific fraud allegations or solely for political reasons. Officials did not immediately provide a public explanation.
Taxes levied by the US federal government are against individuals and businesses directly. States also levy their own taxes independently. So these funds paid to the federal government (largely) don’t go through state hands.
They could withhold taxes on state employees. That would be easy. If they wanted to go full second civil war, They could pass laws making it illegal for companies to pay taxes to the federal government.
Ah I see. Then it makes sense. The population itself would have to stop paying taxes. That’s a bit more complicated because then individuals would be sanctioned by the government and people probably don’t want to take that risk.