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Trump Administration Freezes Billions in Child Care Funds to Five Democrat-Led States, Alleges Fraud

by WZMQ
January 8, 2026
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WASHINGTON, D.C. – The Trump administration has paused ten-billion dollars federal childcare funding in five Democrat-led states over claims of alleged fraud. However, the administration hasn’t provided any evidence of fraud.  

HHS Spokesman Andrew Nixon sent us this comment after we asked what evidence they had of the alleged fraud: “For too long, Democrat-led states and governors have been complicit and allowing massive amounts of fraud to occur under their watch,” said Nixon. “HHS identified serious concerns in these five states that warranted immediate action to prevent further potential misuse while reviews are underway.” 

This funding freeze will impact New York, California, Colorado, Illinois and Minnesota. It follows the administration’s pause last week in millions of dollars in aid to Minnesota day care centers after investigators say more than a dozen welfare fraud schemes in that state led to billions of dollars in taxpayer losses.  

The money that’s been frozen to these states goes towards programs that help get cash assistance to low-income households with children; Help low-income families get childcare so they can work or attend a job training or educational program; And to help protect children and adults from neglect, abuse and exploitation.  

New York Senator Kirsten Gillibrand (D- NY) said the funding freeze will hurt families and childcare providers who are already struggling to get by.  

“Let me be clear, the decision to cancel childcare funding has nothing to do with fraud,” said the Senator. “The truth is it’s a political attack. Donald Trump is punishing children for political gain and New York families are unfairly paying the price. It’s sickening.” 

We asked Rep. Nick Langworthy (R- NY) if the administration’s decision to pause the funding was premature before finding any fraud: 

“My guess what the president is doing in his own way is getting everyone’s attention,” said Rep. Langworthy. “And obviously I want to see funds that continue to flow to those who need it in New York but I want the Governor in particular of New York, Governor Hochul, to satisfy that this isn’t happening in New York.”  

In a press release, HHS said funds will remain frozen until they finish a review and determine the states are in compliance with federal requirements.  

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