Overview
- California, Colorado, Illinois, Minnesota and New York were notified that access to TANF (~$7.35 billion), the Child Care and Development Fund (~$2.4 billion) and the Social Services Block Grant (~$869 million) is restricted pending review.
- HHS officials said states must provide additional documentation and verification to receive child care funds, with payments paused until compliance is confirmed.
- The action escalates scrutiny centered on Minnesota, where longstanding federal investigations, dozens of charges and a widely viewed video alleging fraudulent day-care sites prompted heightened checks.
- Democratic leaders including New York Governor Kathy Hochul and Senator Kirsten Gillibrand denounced the freeze as punitive toward families and providers, while some state officials reported receiving little or no formal notice.
- Federal entities including the Justice Department, FBI, Homeland Security and Treasury are continuing probes into alleged misuse, and state challenges to the restrictions are being prepared.