The Brief

In halting childcare and welfare benefits to hundreds of thousands of low-income Californians, the Trump administration says it’s “concerned by the potential for extensive and systemic fraud.”

“These concerns have been heightened by recent federal prosecutions,” states the funding freeze letters to California from Trump-appointed officials at the U.S. Department of Health and Human Services (HHS).

When pressed for details about what specific prosecutions justify the freeze in California, administration officials have offered few specifics. Confirmed fraud concerning the targeted programs appears to be a tiny fraction of the total spending.

The letters don’t mention any prosecutions here in California, as the administration cites it as justification for cutting off billions of dollars in support for food, housing and childcare.

A spokesperson for the federal agency declined to comment when asked what prosecutions the letter refers to, and for the basis for the broader fraud concerns cited as the reason for cutting off funds.

Prosecutions that have been brought around child care benefits amount to a small fraction of 1% of the federal childcare funding California has received, according to a search of all case announcements on federal prosecutors’ websites covering the whole state. The U.S. Department of Justice, which oversees such prosecutions, has not responded to a request asking if additional cases exist.

At a news conference Friday, LAist asked Bill Essayli, the top federal prosecutor for the region, if he knew of any federal prosecutions of childcare benefit fraud besides a single 2023 case previously cited by federal officials. Essayli did not point to any other federal prosecutions. The region he oversees includes over half of California’s population, including the counties of L.A., Orange, Riverside and San Bernardino.

In a separate emailed response to questions from an NPR reporter, the White House pointed to an article about a separate case in San Francisco that did not indicate it involves the federal funds being frozen.

What’s not known is the scale of complaints federal authorities have received about California’s spending with these three programs, and to what extent cases will be brought in the future. It’s also unclear how problems with California’s spending on these programs compare with other states that are not being targeted with funding freezes.

Last year, a federal Government Accountability Office review found about three-quarters of states — 37 of 50 — had negative findings in audits about their oversight of the largest program the administration is freezing funding to in five blue states.

That federal program is called Temporary Assistance for Needy Families, or TANF.

Mississippi has an ongoing fraud scandal over misuse of $77 million in TANF and other welfare dollars — much of which was used to benefit wealthy athletes like former NFL quarterback Brett Favre.

Former pro wrestler Ted DiBiase Jr. is currently on trial in a federal case alleging he conspired to fraudulently get millions in TANF welfare dollars through sham contracts for services that were never provided, as part of Mississippi's fraud scandal.

Mississippi is not among the five states the Trump administration is freezing TANF funds to, all of which are run by Democrats.

One known federal case in California

In order to determine what federal prosecutions the administration is using to justify cutting California off from federal safety net programs, LAist ran searches through all announced cases over the past decade-plus by all four federal prosecutor offices in the state. It shows a total of one case mentioning childcare benefits fraud, brought in San Diego in 2023 over $3.7 million in alleged stolen funds.

The amount alleged to be stolen was equivalent to less than $1 out of every $10,000 California received from the funding the administration is freezing over the timeframe of the announcement search.

The federal agency that distributes the funds, HHS, has a nationwide watchdog office that investigates fraud in the programs being frozen. It’s known as the Office of Inspector General, or OIG.

The inspector general’s office has thousands of reports online about fraud and misspending across HHS’ vast programs nationwide.

But a search found no reports around problems with spending in California among the three programs impacted by the spending freeze.

“As your search confirms, there aren’t public OIG-released materials on fraud in these programs occurring in California,” said a spokesperson for the inspector general’s office.

That contrasts with Minnesota, where large-scale fraud cases have been brought in recent years over theft of federal dollars meant for food and other social services. An OIG report last year found Minnesota did not comply with requirements around documenting attendance and payment to childcare providers.

In an apparent error, one of the administration’s funding freeze letters to California asks for documents about Minnesota’s processes.

Criticism that Minnesota officials failed to prevent fraud in their state drove the state’s Democrat governor, Tim Walz — who ran for vice president against Donald Trump’s ticket in 2024 — to announce Monday he was dropping out of running for reelection.

That same day, the administration announced it was expanding the funding freeze to include California and three other Democrat-led states, in addition to Minnesota.

The following morning, President Trump alleged — without giving specifics — that corruption in California is worse than Minnesota.

“California, under Governor Gavin Newscum, is more corrupt than Minnesota, if that’s possible??? The Fraud Investigation of California has begun. Thank you for your attention to this matter! PRESIDENT DONALD J. TRUMP,” the president wrote on his social media platform Truth Social.

The White House has not responded to LAist requests for an interview with President Trump.

Governor Newsom has drawn criticism in recent years for vetoing a bill to more closely track spending and outcomes for tens of billions of state homelessness dollars, which had passed unanimously in the state Legislature.

CalWORKS

In response to NPR’s questions about the basis for the funding freeze, the White House’s Office of Management and Budget pointed to the San Diego case and a local prosecution by the San Francisco DA last year involving up to $400,000 in childcare funds.

It’s unclear if the San Francisco childcare case involved the same funding streams that are being frozen. The DA’s office and White House have not responded to a request for clarification.

The other, and by far largest, issue pointed to by the White House was described as $108 million lost from California’s welfare program, CalWORKS.

“CalWorks, a TANF recipient, had lost more than $108 million in cash benefits due to welfare fraud," the White House statement said with a link to a news release from the Orange County DA's Office.

LAist looked into it, and the situation is more complex. The DA’s news release says the losses are related to a scam called EBT card skimming.

That’s when scammers steal benefit card money from welfare recipients’ benefit cards. When that happens, the state covers the losses out of state funds, according to CalMatters.

The CalWORKS EBT cards are mostly funded by state and local dollars, according to state figures. About a third of the funding for those cards comes from TANF, the largest federal program being frozen.

The White House has not responded to follow-up questions.

EBT card skimming is an issue nationwide, not just the states where funds are being frozen, according to news reports.

Legal challenge

Trump has pardoned or commuted the sentences of several people convicted of large-scale frauds, including commuting the 20-year prison sentence of a man convicted in a case alleging $1.3 billion in fraudulent health claims to the federal government. The Justice Department called it the largest health care fraud scheme ever prosecuted up to that point.

At a news conference Thursday, Vice President J.D. Vance said the Justice Department would be creating a new high-level position to oversee fraud prosecutions. That official will be directly overseen by Trump and Vance, according to the vice president.

Later in the day, California Attorney General Rob Bonta announced a lawsuit seeking to stop the funding freeze, filed by California and the other blue states targeted by the freeze.

The next day — Friday — a federal judge granted a temporary restraining order preventing the freeze for now. Further arguments and decisions in the case are expected in the coming weeks.

NPR correspondent Jennifer Ludden contributed reporting to this story.

TEL AVIV, Israel — Israel and the U.S. have launched what Israel describes as a preemptive military strike against Iran, amid weeks of escalating tensions and heightened U.S. military presence in the region.

An Israeli source told NPR the strike is being conducted jointly with the U.S. There was no immediate U.S. comment about the strikes.

Iranian government media report rocket fire in parts of the capital, Tehran. State television has broadcast footage showing smoke rising after a blast in the city. The extent of the damage and potential casualties has not yet been confirmed.

Air raid sirens sounded across Israel at approximately 8:15 a.m. local time, warning civilians to prepare to enter bomb shelters.

In an official statement, Israel's Defense Minister Israel Katz described the operation as a preemptive action aimed at neutralizing threats against Israel.

"As a result, a missile and drone attack against the State of Israel and its civilian population is expected in the immediate future."

He stated that missile and drone attacks from Iran were expected imminently. A 48-hour state of emergency has been declared nationwide.

Israel has closed its airspace to all passenger flights, and civil defense protocols have been activated. Regional military forces remain on high alert.

The strike follows weeks of speculation about potential military action against Iran, particularly amid a significant U.S. military buildup in the Middle East.

This is a developing story and will be updated.

Copyright 2026 NPR

Facing a multi-million-dollar budget shortfall for the upcoming school year, Pasadena Unified's school board voted unanimously this week to finalize a plan to send layoff notices to more than 160 staff members as part of an effort to balance its budget that began last fall.

The district has maintained that the job reductions are necessary because of a $30 million budget deficit, part of a financial crisis made worse by the Eaton Fire.

California schools must notify employees about potential layoffs for the following school year by March 15. The number of current employees who will be out of a job next year is still unclear, in part, because people may be reassigned to vacant positions. In the past, PUSD has also rescinded some layoff notices before they took effect.

Parents, teachers and union leaders at the Thursday meeting criticized the district for targeting teachers and school staff for layoffs instead of administrative positions.

“ Teaching for PUSD means anxiety every March as it approaches, because we don't know if we're going to get to keep our job or not,” said Genevieve Miller, a PUSD teacher who said her children also graduated from the district. “ There's a different way forward.”

Board members acknowledged the decision they made was difficult.

“ I just want to be very clear that this is not the outcome that anybody prefers,” Board member Yarma Velázquez said. “Workforce reductions and the continuous, year after year position of being in this place where we have to reduce positions is draining and it is painful.

“I am very aware of what the implications are for all of the people that work here at PUSD.”

The board meeting

At the meeting, which started at 4 p.m. and nearly lasted until midnight, parents highlighted the potential of families and teachers choosing to leave the district because of the layoffs.

“ Right now, the [PUSD] community is in fight mode, as you can see from the turnout and other comments being made here tonight,” said parent Neil Tyler. “But if you approve these resolutions as proposed tonight, a large chunk of the community will quickly shift to flight mode and the death spiral of this district will begin.”

Jonathan Gardner, president of United Teachers of Pasadena, told the board that the cuts meant the district would lose dozens of middle and high school teachers and child development staff.

“ The best thing for kids and staff is always stability and making sure that we have full staff,” Gardner said. “The priorities should be working from the student experience out. Instead, what we see is millions and millions of dollars being spent on contracted services and millions and millions being spent on extra staffing at the central office.”

Speakers also noted that Pasadena Unified had endured years of budget cuts, which affected teachers, librarians and office staff.

Others said PUSD was failing to meet its requirement under California law to commit at least 55% of the district’s education expenses to teacher salaries.

LAist reached out to the district for comment on this but has not yet received a response.

Pasadena Unified board members said the cuts were necessary, especially after warnings from regulators that they could be out of compliance with requirements to balance the budget.

“For the sake of the district's solvency, I feel like it would be irresponsible if I took an action that put this district in jeopardy,” board member Michelle Bailey said Thursday night. “I can't in good conscience take that kind of action.”

About the budget issues

Concerns over declining enrollment numbers, which are tied to funding, have been growing since the Eaton Fire.

A report commissioned by a state agency recommended that the state increase its funding for the school system to help with fire recovery.

Some observers said Pasadena Unified’s budget issues date back much longer than that.

“Over the past 30 years, Pasadena Unified has faced a mounting fiscal calamity, one that you can no longer ignore or postpone,” Octavio Castelo, director of business advisory services for the Los Angeles County Office of Education, told Pasadena Unified’s board in November. “Despite your best efforts and intentions, the district has not been able to live within its means."

Cutting staff will likely mean losing some school programs, including language and music.

“ You have Mary Jackson [Elementary in Altadena] — it's a science magnet school, and they're cutting the science teacher,” Gardner, the teacher’s union president, told LAist. “That's the heart of the school.”

What happens next

The layoff notices are expected to be sent to affected staff members by mid-March.

The district will have until summer to finalize the list.

K-12 education reporter Mariana Dale contributed reporting.

The Los Angeles Unified School Board voted unanimously Friday to place Superintendent Alberto Carvalho on paid administrative leave pending the outcome of an investigation.

The FBI searched Carvalho’s home and district offices Wednesday. A DOJ spokesperson said the agency had a court-authorized warrant but declined to provide additional details. The FBI told LAist media partner CBS LA that the underlying affidavit remained under court-ordered seal.

The board also appointed current Chief of School Operations Andres Chait as acting superintendent after the seven-hour closed meeting Thursday and Friday.

“I know that this is a very challenging time,” said Board President Scott Schmerelson in a brief public statement after the decision was announced. “I want you to know that the board believes in you, supports you and knows that you will continue to do your very best to support the students and families of the district.”

Schmerelson clarified in an email to LAist that he was referring to Chait. The seven-member board exited the meeting room without taking questions. Carvalho was not present and has not made a public statement since the searches Wednesday.

The district posted a statement online later in which Schmerelson wrote that “today’s action is aimed at fulfilling our promise to students and families to provide an excellent public education without distraction.”

The board’s decision provided clarity about district leadership but did not shed light on the reason for the searches, which have been the subject of widespread speculation.

“While we understand the need for information, we cannot discuss the specifics of this matter pending investigation,” read the district’s statement.

Who is the acting superintendent?

Chait has worked for the district for nearly three decades. The chief of school operations’ responsibilities are varied and include athletics, the district’s office of emergency management and staff investigations. Chait has presented to the board on everything from school safety to the cell phone ban and the district’s calendar.

Chief of School Operations Andres Chait has worked for LAUSD for nearly three decades.

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Courtesy of Los Angeles Unified School District

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“I am humbled by the board’s confidence in appointing me to serve as acting superintendent during this critical time," Chait said in the district’s statement. "Our focus remains clear: to ensure stability, continuity and strong leadership for our students, families and employees."

What we know about AllHere, LAUSD’s AI tool

A spokesperson for the FBI in Miami confirmed Wednesday’s L.A. searches are linked to a search of a South Florida home the same day. That property, identified by local media outlets, belongs to Debra Kerr, who was associated with the company LAUSD contracted to create a short-lived AI tool called AllHere.

Federal authorities have not connected AllHere to this week’s investigation.

Los Angeles Unified approved a $6.2 million contract with AllHere in June 2023 to develop a tool that would create an “individual acceleration plan,” using district data and featuring an artificial intelligence chatbot.

LAUSD debuted “Ed” the following March as a "personal assistant" to students that would point them toward mental health resources and nudge students who were falling behind.

Within three months of its debut, the company behind Ed, AllHere, furloughed the bulk of its staff; its CEO was later charged with fraud. The district defended the process it used to debut that chatbot, which cost $3 million.

Parents and educators demanded transparency after the district shut down the chatbot.

Many questions remain

The federal investigation comes at a time when LAUSD is financially strained, cutting hundreds of jobs and facing pressure from the district’s largest labor unions to settle new contracts.

SEIU Local 99, which represents school support staff and United Teachers Los Angeles (UTLA) have issued statements calling on the district to clearly communicate about the status of the superintendent and the investigation.

"UTLA educators and our school communities have long raised concerns about LAUSD rapidly increasing spending on education tech and outside contractors, while investment in classrooms and educators has declined,” UTLA wrote in a statement provided to LAist.

Carvalho has been superintendent of LAUSD since 2022, and the board unanimously renewed his contract in 2025. Prior to coming to L.A., Carvalho had worked for the Miami-Dade County school district for decades, 30 years as a teacher and the last 14 years as the district's supervisor.

Carvalho's time at LAUSD has included a number of wins for the district, including gains in test scores and participation in AP classes.