DENVER — The Trump administration plans to pull billions in federal funding from social services in Colorado and four other Democratic-led states, officials from the U.S. Department of Human Health and Services (HHS) announced Tuesday.
Aside from Colorado, the states affected would include California, Illinois, Minnesota, and New York, according to HHS officials. The funding freeze applies to three programs overseen by HHS’s Administration for Children and Families (ACF), the spokesperson said, adding that letters of the action by the Trump administration had been sent to each of the governors notifying them that "access to these funding streams is now restricted pending further review."
The New York Post first reported the latest move by the Trump administration. It was later confirmed by Scripps News.
The Colorado Department of Early Childhood (CDEC), which manages these programs, told Denver7 it has not received official notice about Child Care and Development Fund (CCDF) funding changes.
“CDEC continues to provide support to families and child care providers statewide, advancing its mission to ensure every child in Colorado has the opportunity to thrive. We are closely monitoring external reports and will share updates if and when official information becomes available,” the agency said in a statement.
Further detailing the potential impact, the proposed funding freeze would affect about $7 billion for the Temporary Assistance for Needy Families program and more than $2 billion for the CCDF. Nearly $1 billion from the Social Services Block Grant program would also be affected.
The move comes as the administration says it's investigating allegations of fraud tied to some social services programs.
"For too long, Democrat-led states and Governors have been complicit in allowing massive amounts of fraud to occur under their watch," said HHS spokesperson Andrew Nixon. "Under the Trump Administration, we are ensuring that federal taxpayer dollars are being used for legitimate purposes. We will ensure these states are following the law and protecting hard-earned taxpayer money."
In December, Deputy Secretary of Health and Human Services Jim O’Neill said on X that the department froze child care payments to Minnesota over claims that funds were being diverted to what he described as “fraudulent day care centers.”
O’Neill said he demanded that Minnesota Gov. Tim Walz audit the centers and provide attendance records, licensing information, and details related to complaints, inspections, and investigations.
Walz has said repeated attacks from the Trump administration were among the reasons he decided not to seek reelection.
“Every minute that I spend defending my own political interest would be a minute I can’t spend defending the people of Minnesota against the criminals who prey on our generosity and the cynics who want to prey on our differences," Walz said.
The administration also raised fraud claims involving SNAP, the country’s main food aid program, saying it would halt administrative money to states — most Democratic-run ones — unless they provide requested details on recipients. That process could take months.
The administration has said the information that’s been provided by most GOP-controlled states shows fraud may be worse than previously believed, though it has not provided the data or detailed reports.
Colorado leaders react
Sen. Michael Bennet, D-Colorado, posted on X that “Donald Trump has declared war on Colorado.”
"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," Bennet said on X.
In a post on X, Rep. Brittany Pettersen, D-Colorado, called the act "political retaliation."
"We’re hearing deeply concerning reports that Trump may withhold child care funding from Colorado families. This would be the latest act of political retaliation against our state for refusing to release election denier and convicted criminal Tina Peters. My team is actively seeking answers but as a mom, I’m outraged that families already struggling with high costs could suddenly lose the child care they rely on," Pettersen said on X.
Scripps News Group and the Associated Press contributed to this report
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