Feds freeze $10B in aid to Colorado, four other states

The federal government cited concerns about “widespread fraud and misuse of taxpayer dollars in state-administered programs.”

“Families who rely on child care and family assistance programs deserve confidence that these resources are used lawfully and for their intended purpose,” said Deputy Secretary of DHHS Jim O’Neill. “This action reflects our commitment to program integrity, fiscal responsibility, and compliance with federal requirements.”

Funding was frozen to three specific programs which are overseen by the Administration for Children and Families, which is part of the department. Those programs are the Child Care and Development Fund ($2.4 billion), Temporary Assistance for Needy Families ($7.35 billion), and Social Services Block Grant ($869 million).

That means over $10 billion in funding has been paused to those states, pending “further review,” according to DHHS.

Many Democrats have spoken out against the pause, including U.S. Sen. Michael Bennet, D-Colorado.

“Donald Trump has declared war on Colorado,” Bennet said in a post on social media on Tuesday. “He is now robbing thousands of vulnerable Colorado families of the critical support they need to afford food, housing and health care. I will pursue all available options to ensure that Trump's latest political attack against our state is stopped.”

This freeze comes following weeks of national turmoil over suspected widespread fraud in a number of different taxpayer-funded programs – including child care centers.

According to the department, it also has "concerns that these benefits intended for American citizens and lawful residents may have been improperly provided to individuals who are not eligible under federal law."

Minnesota has been the epicenter of the fraud scandal, though it is slowly spreading to other states. So far, fallout in Minnesota includes federal funding cuts to day care centers and Gov. Tim Walz announcing he will not run for reelection this year.

Lawmakers in many other states are also requesting audits of their own state’s programs to ensure against fraud.

The three programs affected help fund child care costs and even provide temporary cash aid to low-income families for food, housing, and utilities, along with job training and work support.

Illinois Gov. JB Pritzker, a Democrat, joined lawmakers from the other affected states in saying that they will fight this funding freeze.

“Rather than making it more affordable for families, Trump is stripping away child care from those just trying to go to work,” he said on social media on Tuesday. “Thousands depend on these programs, and now their livelihoods are at risk. It's wrong and cruel — we'll take every step possible to defend Illinoisians.”

The Trump administration said it will consider restoring the funding once the states are compliant and submit a “justification and receipt documentation.”

“We have a responsibility to protect taxpayer dollars and ensure these programs serve the families they were created to help,” said Assistant Secretary for Children and Families Alex J. Adams. “When there are credible concerns about fraud or misuse, we will act.”