On January 13, 2026, President Donald Trump spoke in Detroit, Michigan, where he addressed immigration policy and federal funding during an appearance that included remarks to the Detroit Economic Club. Trump declared an immediate halt to certain federal welfare payments, focusing specifically on those related to undocumented immigrants entering California.
In his statement, Trump said: “…It is a big scam. It is a giant scam run by an incompetent crooked governor. And we are freezing any and all welfare payments going to illegal immigrants… and that will start effective immediately. When illegals come into California. Gavin Newscum… And they send us bills for the people coming in. We are not paying it. Remember Nancy Reagan. Just say no.”
Trump framed the decision as a response to what he described as fraudulent or improper use of federal funds, accusing California Governor Gavin Newsom of enabling the issue and portraying the state as attempting to bill the federal government for services provided to undocumented immigrants. He invoked the famous “Just Say No” anti-drug campaign slogan from former First Lady Nancy Reagan to emphasize a firm refusal to make such payments.
This announcement comes amid ongoing tensions between the Trump administration and several Democratic-led states, including California. In early January 2026, the U.S. Department of Health and Human Services (through the Administration for Children and Families) froze billions of dollars in federal funding for programs such as child care subsidies, Temporary Assistance for Needy Families (TANF), and social services block grants in states including California, Colorado, Illinois, Minnesota, and New York. The administration cited concerns over potential widespread fraud and the alleged provision of benefits to ineligible individuals, including undocumented immigrants.
The funding restrictions, affecting roughly $10 billion across these states, were justified by federal officials as necessary to root out misuse of taxpayer dollars intended for American citizens and lawful permanent residents. California, in particular, has been singled out in administration statements and letters demanding detailed data on program recipients and providers.
Governor Newsom and other state leaders have strongly criticized the moves, describing them as politically motivated and unlawful. California officials, along with attorneys general from other affected states, have filed lawsuits challenging the funding freezes, arguing that they lack proper procedural grounds and could harm low-income families reliant on the programs.
Trump’s Detroit remarks, delivered live on Fox News build on these earlier actions and highlight his administration’s continued emphasis on restricting federal benefits in connection with immigration enforcement. The speech occurred during a visit to Michigan focused on economic issues, manufacturing, and energy, but included pointed criticism of Democratic governors and sanctuary-style policies.
