By SDCN Staff
WASHINGTON–The Trump administration on Tuesday froze $10 billion in grant funds for child care and family assistance programs in five Democratic-led states, citing concerns about “widespread fraud” in state-administered programs.
The U.S. Department of Health and Human Services has frozen access to certain federal child care and family assistance funds for California, Colorado, Illinois, Minnesota and New York.
The action affects three programs overseen by the Administration for Children and Families: the Child Care and Development Fund, Temporary Assistance for Needy Families, and the Social Services Block Grant. In letters sent to the governors of the five states, ACF said access to the funding streams is restricted pending further review.
The restricted amounts include nearly $2.4 billion from the Child Care and Development Fund, $7.35 billion from the Temporary Assistance for Needy Families program, and $869 million from the Social Services Block Grant.
Temporary Assistance for Needy Families and Social Services Block Grant provide support for families with children, including assistance with child care costs and other services. Administration for Children and Families said it has identified concerns that some benefits intended for U.S. citizens and lawful residents may have been provided to individuals who are not eligible under federal law.
Health and Human Services Deputy Secretary Jim O’Neill said the freeze reflects the department’s focus on program integrity, fiscal responsibility and compliance with federal requirements.
The funding freeze follows Administration for Children and Families’ recent nationwide activation of its Defend the Spend system. Under the restrictions, the five states must submit justification and receipt documentation before federal payments are released. ACF also launched a fraud reporting portal at childcare.gov for parents, providers and community members to report suspected fraud or program misuse.
Assistant Secretary for Children and Families Alex Adams said the agency will act when there are credible concerns about fraud or misuse.
The funds will remain frozen until the agency completes its review and determines the states are in compliance with federal requirements.
