Washington: The administration of Donald Trump has frozen billions of dollars in federal child care and family assistance funding to five US states citing concerns over possible misuse of public money, according to US officials and state authorities.
The funding pause affects California Colorado Illinois Minnesota and New York. Officials from the US Department of Health and Human Services said the decision was taken after reviews raised questions about how some child care and social welfare funds were being used at the state level.
The money on hold includes support for child care services for working families assistance for low income households and social services meant to protect vulnerable children and parents. Together the frozen funds amount to more than ten billion dollars according to federal estimates.
The administration says the move is meant to protect taxpayers and ensure that federal money reaches families who truly qualify for assistance. Officials pointed to past cases of alleged fraud in child care related programs especially in Minnesota as a reason for tighter oversight.
State leaders in the affected states strongly rejected the decision. They warned that the funding freeze could disrupt child care centers delay payments to providers and place additional strain on families who rely on subsidies to keep working. Some governors described the action as politically motivated and said it unfairly targets states led by Democratic administrations.
Several state officials said they are reviewing legal options and may challenge the freeze in court. They argue that federal law requires funds approved by Congress to be released and that any concerns about fraud should be addressed without harming families and children.
Child care advocates also expressed concern that even a temporary pause could force some centers to reduce services or close classrooms. They said the impact would likely be felt most by low income families who have few alternatives.
Federal officials said the freeze is not permanent and that funds could be released once states provide additional documentation and meet new federal requirements. More guidance from the health department is expected in the coming days as talks continue between Washington and state governments.