FRESNO, Calif. (KFSN) -- Parents may need to pay higher childcare costs in California until further notice.
On Tuesday, the Department of Health and Human Services announced it is freezing $10 billion in program funding due to alleged fraud.
All five states impacted are Democratic: California, Colorado, Minnesota, Illinois, and New York.
Officials said families in Fresno County will likely be impacted by the frozen federal funds, as more than 52% of residents rely on social services.
"Our families are going to feel the pain, unfortunately," said Luis Chavez, Fresno County Supervisor for District 3.
Chavez blasted the Department of Health and Human Services on Tuesday after the federal agency cited fraud as the reason for freezing $10 billion in funding for childcare services.
President Trump targeted California Gov. Gavin Newsom on Truth Social, stating that "Fraud Investigation of California has begun," but didn't specify what is being investigated or what the alleged fraud is.
Gov. Newsom's Office responded in a statement to Action News, laughing, calling Trump "a deranged, habitual liar," and claiming Newsom has blocked over $125 billion in fraud.
"To me, it's shameful. And it's a bad time, because right now, as we're seeing, inflation is still high, gas prices are still high, energy costs, rent, mortgages," said Chavez.
Included in rising costs: childcare.
The Bureau of Labor Statistics reports that daycare and preschool costs increased 4.7% in the past year.
Chavez's colleague, Nathan Magsig, also worries about the impact but says something has to be done.
"I am very concerned with how this is going to impact residents here in Fresno County, but I do welcome the federal government to come in and make sure where there is fraud and abuse and waste, that, of course, is cut out," said Magsig, who represents Fresno County's 5th district.
"If there are folks, or organizations, or entities that are engaging in this, let's focus on prosecuting them and not just blanketly say a whole state is committing fraud. We know that's not accurate. We know that's not real," said Chavez.
The Trump Administration said that in California, CalWORKs, which provides benefits such as Medi-Cal, CalFresh, and EBT, lost more than $108 million in cash benefits due to welfare fraud.
Childcare programs in all five impacted states were frozen due to what officials called "rampant fraud" and "giving money to illegals," according to a senior Trump Administration official.
"What's very disappointing is that it seems to be a very politicized move. Only five democratic states were affected by this," said Chavez.
"There needs to be more restrictions put into place as people receive benefits. We need to make sure that only those individuals who are qualified and who are here in the United States are receiving those benefits. Not other individuals who maybe are in prison or live in other countries," said Magsig.
As county officials await information on which local programs will be directly affected, they say they're working to mitigate potential impacts.