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Trump Says States Must Run Medicaid, Medicare and Daycare as War Costs Rise

The shift features an order to block daycare grants alongside an anti-fraud drive led by Vice President J.D. Vance.

Overview

  • At a White House Easter luncheon, President Trump said Washington cannot pay for Medicaid, Medicare or daycare during wartime and said he told OMB Director Russell Vought not to send daycare money.
  • The Pentagon reported more than $11.3 billion spent in the first week of U.S. operations in Iran, a cost the president cited to justify narrowing federal responsibilities to military protection.
  • The Department of Health and Human Services has already halted childcare and family assistance funds to California, Colorado, Illinois, Minnesota and New York, alleging misuse of federal grants.
  • Trump announced on Truth Social a new anti-fraud task force led by Vice President J.D. Vance, saying the effort would focus primarily on Democratic-led states.
  • Democrats condemned the move, with Rep. Ro Khanna arguing the billions spent on the Iran campaign could cover affordable childcare for families instead.