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yesterday

HHS Freezes More Than $10 Billion for Child Care and Social Services in Five States

The department cites fraud concerns tied to Minnesota investigations and says access to the funds is restricted pending review.

FILE = The Health and Human Services seal is seen before the news conference of Secretary Robert F. Kennedy Jr. at the Hubert Humphrey Building Auditorium in Washington, Wednesday, April 16, 2025. (AP Photo/Jose Luis Magana, File)
The seal of the U.S. Department of Health and Human Services (HHS) adorns a lectern during a press conference in Washington, D.C., U.S., April 16, 2025. REUTERS/Elizabeth Frantz
Children watch television at ABC Learning Center in Minneapolis, Minn., on Wednesday, Dec. 31, 2025. (AP Photo/Mark Vancleave)
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Overview

  • The freeze targets California, Colorado, Illinois, Minnesota and New York, affecting TANF (~$7.35 billion), the Child Care and Development Fund (~$2.4 billion) and the Social Services Block Grant (~$869 million), according to HHS.
  • Officials say the step follows heightened probes of alleged program abuse in Minnesota, with federal agencies escalating audits and law-enforcement activity after a widely viewed video prompted added scrutiny.
  • HHS says states will face tighter verification requirements and noted it rescinded a 2024 child-care payment rule that allowed provider payments before attendance was verified.
  • Democratic governors and lawmakers condemned the move as punitive and harmful to low-income families, and some state officials said they had not received formal notification of changes.
  • Some federal officials have raised concerns about funds being diverted to non-citizens, a claim reported to the New York Post, while news outlets note there is no public evidence of widespread fraud in the other four states.