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Trump administration freezing $10 billion in child care funds in five states

By
Updated  January 6, 2026 12:28pm MST
Politics
FOX Local
article

FILE-Children participate in activities at a day care center. (Photo by Maansi Srivastava for The Washington Post via Getty Images)

The Brief 

    • The Trump administration is set to freeze billions of dollars in child care funding for California, Colorado, Illinois, Minnesota, and New York.
    • Programs including Temporary Assistance for Needy Families and Child Care Development Fund are affected by the funding pause. 

The Trump administration plans to freeze over $10 billion in federal child care and social services funding in five states. 

According to FOX News, more than $7.3 billion in Temporary Assistance for Needy Families (TANF) funding would be withheld from the five states, along with nearly $2.4 billion from the Child Care Development Fund (CCDF) and another $869 million from the Social Services Block Grant.

Axios reported that the White House actions are in reference to social services fraud in Minnesota to threaten funding for child care nationwide.

What five states are affected by the funding freeze?

Why you should care:

Citing the New York Post, FOX News reported that the Department of Health and Human Services (HHS) freeze will impact the following states:

  • California
  • Colorado
  • Illinois
  • Minnesota
  • New York

According to FOX News, the funding freeze was expected to be announced in letters sent to state officials Monday, referencing worries that the child care benefits were improperly directed to non-American citizens.

RELATED: Tim Walz ends reelection campaign for governor of Minnesota

In December 2025, the New York Post first reported that in December, Health and Human Services letters were sent to Minnesota Gov. Tim Walz and Minneapolis Mayor Jacob Frey that requested information on whether billions of dollars in taxpayer money might have been used to help "fuel illegal and mass migration."

Those inquiries were followed by probes launched by the Treasury Department and the House Oversight Committee into an alleged fraud scandal involving several nonprofits tied to the Somali community in Minneapolis.

RELATED: Minnesota agencies increase child care center visits following fraud scrutiny

This news also came as Minnesota Gov. Tim Walz announced Monday that he was dropping his reelection bid for a third term in office as he endured criticism for his management of the state’s welfare assistance fraud scandal. 

FOX 9 Minneapolis reported that the Department of Health and Human Services announced it has frozen child care payments to Minnesota amid the ongoing investigation.

The Source: Information for this story was provided by FOX News, FOX 9 Minneapolis, and Axios. This story was reported from Washington, D.C.


 

PoliticsDonald J. TrumpU.S.News