The Trump administration is tightening oversight and freezing some funds. Here’s a breakdown of where child care money comes from and how it’s distributed.
Child care providers and families across the nation are facing tighter limits on federal subsidies as the Trump administration responds to concerns about fraud.
The Trump administration’s moves to freeze large swaths of funding have been criticized as hurting families, but the Department of Health and Human Services (HHS) has emphasized the need for funding integrity.
Here’s what to know about how child care funding is used, and how it is now being questioned.
What’s Frozen
HHS announced on Jan. 6 that access to federal child care assistance funds was frozen for California, Colorado, Illinois, Minnesota, and New York.
In a press release, the department cited “concerns about widespread fraud and misuse of taxpayer dollars in state-administered programs.” Those funds will be frozen until the Administration for Children and Families within HHS completes a review and is satisfied the states are compliant with federal requirements.
The freeze applies to three programs under HHS’s Administration for Children and Families, including nearly $2.4 billion in the Child Care and Development Fund (CCDF), which distributes federal support for low-income families.
In fiscal year 2024, there were nearly 6.3 million children ages 5 and under who qualified for the assistance, but fewer than 840,000, or around 13 percent, actually received it.
HHS has also frozen $7.35 billion for the Temporary Assistance for Needy Families program and $869 million for the Social Services Block Grant. Combined, the funding to those three programs for the states in question totaled more than $10 billion.
Deputy Secretary Jim O’Neill commented on the freeze, saying, “Families who rely on child care and family assistance programs deserve confidence that these resources are used lawfully and for their intended purpose.
“This action reflects our commitment to program integrity, fiscal responsibility, and compliance with federal requirements.”
This came just days after the Trump administration announced that child care funding would be frozen to all 50 states until additional verification steps were completed by providers.
The providers will be required to disclose attendance records, licensing, and audits to continue receiving payments.
