Trump Administration Withholds $328M in Health Grants from California

Funds withheld due to alleged fraud and mismanagement, but no evidence presented

Published on Feb. 10, 2026

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The Trump Administration has decided to withhold $328 million in public health grants from California, citing a history of fraud and mismanagement by the state. Three other Democratic-led states - Colorado, Illinois, and Minnesota - are also having grant funds withheld. California Governor Gavin Newsom has vowed to litigate the decision, stating "We believe in the rule of law, not the rule of Don."

Why it matters

This decision by the Trump Administration is seen as a politically-motivated move to target Democratic-led states. The loss of $328 million in public health funding could have significant impacts on California's ability to provide critical health services and programs to its residents.

The details

The Trump Administration has not provided specific evidence to back up its claims of fraud and mismanagement by California. A Department of Health and Human Services spokesperson simply stated that "these grants are being terminated because they do not reflect agency priorities." This is part of a broader pattern of the federal government cutting funding to Democratic-led states, including efforts to withhold child care subsidies, social service programs, and SNAP food aid.

  • On February 10, 2026, the Trump Administration announced it would withhold $328 million in public health grants from California.

The players

Gavin Newsom

The Governor of California, who has vowed to litigate the Trump Administration's decision to withhold $328 million in public health grants from the state.

Trump Administration

The federal government under former President Donald Trump, which has decided to withhold $328 million in public health grants from California and three other Democratic-led states.

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What’s next

California plans to file a lawsuit challenging the Trump Administration's decision to withhold the $328 million in public health grants.

The takeaway

This decision by the Trump Administration appears to be a politically-motivated move to target Democratic-led states, rather than one based on evidence of fraud or mismanagement. The loss of critical public health funding could have significant impacts on California's ability to provide important health services and programs to its residents.