A year-end funding freeze jolts Minnesota
On Dec. 30, 2025, the Trump administration said it would freeze federal child care funding to Minnesota and demand audits after a string of alleged fraud schemes tied to government programs. [1] The move centers on the Administration for Children and Families (ACF), part of the U.S. Department of Health and Human Services (HHS), which provides $185 million annually to Minnesota—money officials said should support about 19,000 children. [1]
Key stakeholders included Jim O’Neill, Deputy Secretary of HHS (also serving as acting CDC director), who wrote on X that the administration had “turned off the money spigot” and demanded documentation including attendance records, licensing, complaints, and inspection histories. [1] Alex Adams, Assistant Secretary for ACF, said Minnesota officials could not say “with confidence” whether alleged fraud was isolated or statewide. [1]
Supporters’ case: The administration argues the freeze is a necessary anti-fraud measure to protect taxpayers and ensure funds reach eligible families, citing allegations that half or more of roughly $18 billion in federal funds supporting 14 programs in Minnesota since 2018 may have been stolen. [1]
Opponents’ case: Gov. Tim Walz (D-Minn.) said Minnesota has been cracking down for years and accused President Trump of politicizing fraud concerns to defund programs that help residents. [1] Rep. Ilhan Omar (D-Minn.) warned against blaming Minnesota’s Somali community broadly, as many defendants in cited cases are Somali Americans. [1]
SNAP “junk food” limits begin in five states
On Jan. 1, 2026, new state waivers restricting SNAP purchases took effect in Indiana, Iowa, Nebraska, Utah, and West Virginia, affecting about 1.4 million people. [2] The policy push is backed by HHS Secretary Robert F. Kennedy Jr. and Agriculture Secretary Brooke Rollins, targeting a $100 billion program serving 42 million Americans. [2]
Supporters’ case: The administration and allied governors say limiting soda and candy purchases could reduce diet-related disease and shift SNAP toward nutrition. [2]
Opponents’ case: Retail and anti-hunger groups warned of point-of-sale confusion, longer lines, and stigma; industry estimates put implementation costs at $1.6 billion upfront and $759 million annually. [2]
Trump escalates pressure on the Fed
On Dec. 29, 2025, President Donald Trump renewed threats to sue Federal Reserve Chair Jerome Powell over renovation management at the Fed’s Washington headquarters, calling it “gross incompetence,” and said he would announce a replacement pick in January. [4]
Supporters’ case: Trump allies frame the dispute as accountability for spending and management at an independent institution. [4]
Opponents’ case: Critics warn that litigation threats and public pressure could undermine the Fed’s independence and rattle markets ahead of a chair transition. [4]
Citations
[1] https://apnews.com/article/minnesota-child-care-funds-fraud-b511941de10f02fbb7349eff6738f748 [2] https://apnews.com/article/snap-waiver-food-stamps-soda-7787585c75e098d3a16aefacc32ac4f5 [3] https://www.politico.com/news/2025/12/30/trump-foreign-policy-hangover-2026-00708098 [4] https://www.reuters.com/world/us/trump-threatens-sue-feds-powell-will-announce-replacement-next-month-2025-12-29/