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Judge Pauses Colorado Child‑Care Funding Freeze During Fraud Review

Colorado warns federal child‑care dollars could run out by Jan. 31 if restrictions resume.

Overview

  • A federal court issued a 14‑day temporary restraining order restoring access to the Child Care and Development Fund as litigation proceeds.
  • The Administration for Children and Families had halted CCDF, TANF, and Social Services Block Grant payments to five states, citing concerns about potential systemic fraud.
  • Colorado officials say roughly 27,000 children could be affected if the freeze returns, with counties and providers bracing for disrupted care and possible furloughs.
  • Parents and operators report they may lose income, reduce enrollment, or close classrooms without assistance, despite the short‑term reprieve.
  • A hearing is set for Jan. 23, and state leaders argue the freeze exceeds executive authority and risks destabilizing families and local economies.