WASHINGTON, DC, January 7, 2026—We are continuing to monitor the Administration’s announcement that it would freeze child care funds to all states.
Earlier this week, states received updated guidance on how to draw down their federal Child Care and Development Fund (CCDF) dollars. States request these funds on different schedules, but as of Wednesday morning, no state has received approval or been denied access to its funding under the new process.
Maintaining consistent federal child care funding is essential to helping children, families, child care businesses and our economy thrive. Threatening this funding puts at risk a system millions of children and families rely on every day. Credible allegations of fraud should be addressed swiftly and thoroughly. If current safeguards need to be strengthened, that must happen without causing real economic harm to families and communities.
Following initial demands of Minnesota last week, on Tuesday, January 6, four additional states (California, Colorado, Illinois, and New York), received letters asserting that the federal administration is concerned about the potential for fraud and the potential for the use of CCDF benefits by non-eligible immigrant families. Those states are now on a restricted draw down of their federal CCDF funding, and must provide child care subsidy attendance records to the federal Administration before accessing funds.
Child Care Aware® of America is deeply concerned that any delays could disrupt child care systems nationwide and urges the Administration to release state funding on schedule.
We will continue to update this page as new information becomes available; bookmark this URL and check back regularly for the latest developments.
WASHINGTON, DC, January 5, 2026—The following is a response to the Trump Administration’s announcement last week that it would freeze child care funds to all states after allegations of fraud were surfaced.
“All fraud is unacceptable, and credible allegations of fraud should be investigated thoroughly and quickly so that every dollar intended for child care is used wisely. At the same time, it is critical that we do not destabilize child care for the nearly million working families who rely on it to go to their jobs every day,” said Susan Gale Perry, CEO of Child Care Aware® of America. "The vast majority of child care programs that receive federal child care funds are good actors providing a vital service to families and communities. These providers already operate on very thin margins and cannot afford delayed or lost revenue. The Administration must act quickly to clarify any additional reporting requirements and establish an orderly process so that there are not delays in payments.”
Long-standing federal and state oversight, auditing, and program integrity requirements are already in place. If additional safeguards are required, they must be thoughtful, targeted, and proportionate to the actual risk based on known facts.
Quality child care is the backbone of our nation’s well-being. It is possible to achieve strong accountability while also ensuring continuity of care for children and families.
