WASHINGTON, D.C. – State lawmakers slammed the U.S. Department of Health and Human Services after it announced it would freeze more than $10 billion in taxpayer dollars to five Democrat-led states.
The federal health agency froze funds for childcare and family assistance programs in California, Colorado, Minnesota, Illinois and New York.
“Families who rely on child care and family assistance programs deserve confidence that these resources are used lawfully and for their intended purpose,” Deputy Secretary of HHS Jim O’Neill said.
Illinois Gov. J.B. Pritzker slammed the Trump administration’s actions. He said freezing child care funds will put thousands of people’s livelihoods at risk.
“Rather than making it more affordable for families, Trump is stripping away child care from those just trying to go to work,” Pritzker wrote on social media. “It’s wrong and cruel – we’ll take every step possible to defend Illinoisians.”
Temporary Assistance for Needy Families and the Social Services Block Grant are two funds the federal health agency froze. The funds are designed to be used by states to support families with children, adding additional support for child care costs and other services.
HHS’ Administration for Children and Families said it identified concerns that some federal funds were not used for American citizens and lawful permanent residents.
The federal health agency has ramped up its enforcement actions against state governments as allegations of fraud in Minnesota daycare centers have increased.
Independent journalist Nick Shirley posted a video to social media alleging more than $110 million in fraud stemming from Minnesota day care centers. Since then, journalists across the country have sought to uncover fraud schemes in other states.
New York Gov. Kathy Hochul, also criticized the Trump administration in a video posted to social media before HHS officially announced its freeze.
“Our kids should not be political pawns in a fight that Donald Trump seems to have with blue state governors,” Hochul said. “This is a fight we’re going to have to take on.”
While the federal government freezes funds in the five states, the states will also be required to submit a justification and receipt documentation before future federal payments are released, according to HHS.
Funds to the five states will be frozen until the federal health agency completes a review of state compliance with federal requirements.
“We have a responsibility to protect taxpayer dollars and ensure these programs serve the families they were created to help,” said Alex Adams, assistant secretary for children and families. “When there are credible concerns about fraud or misuse, we will act.”
