U.S. Restricts Child Care And Family Assistance Payments In California, Colorado, Illinois, Minnesota, New York

Washington, D.C. — Families who rely on child care subsidies and cash assistance in California, Colorado, Illinois, Minnesota and New York could see delays as the U.S. Department of Health and Human Services restricts access to certain federal payments while it reviews fraud and misuse concerns. 

HHS said Tuesday that the action affects three programs run through its Administration for Children and Families: the Child Care and Development Fund, Temporary Assistance for Needy Families, and the Social Services Block Grant. The agency said it sent letters to the five governors and will require states to submit justification and receipt documentation before federal payments are released. 

In its announcement, HHS cited “serious concerns” about widespread fraud and said it is reviewing whether benefits were improperly provided to people who are not eligible under federal law. The department did not publicly detail specific cases tied to each state. 

HHS said the restrictions cover totals of roughly $2.4 billion (CCDF), $7.35 billion (TANF) and $869 million (SSBG). 

For parents, the most immediate risk is administrative slowdown: states may need more time to process federal draws, which can ripple into provider reimbursements and subsidy payments. Families should confirm payment timelines with their county or state child care office and keep copies of attendance records and billing statements if a provider requests documentation.

HHS said it has expanded a “Defend the Spend” payment review approach nationwide and launched a fraud reporting portal at childcare.gov. Officials in the affected states criticized the move as politically motivated, warning it could squeeze low-income families. 

What’s next: HHS said the restrictions will remain until ACF completes its review and determines the states are compliant; families should watch state agency updates and local provider notices for changes. 

This article was produced by an education parenting today journalist with the assistance of AI. This is not legal advice. All content is reviewed for accuracy and fairness.

Source: https://www.hhs.gov/press-room/hhs-freezes-child-care-family-assistance-grants-five-states-fraud-concerns.html