Overview
- HHS has halted disbursements from the Child Care and Development Block Grant, Temporary Assistance for Needy Families, and the Social Services Block Grant to Colorado, California, Illinois, Minnesota and New York.
- White House and HHS officials say states must provide receipt‑style proof for child‑care payments, including photo evidence or attendance verification, with stricter documentation rolling out nationwide.
- Colorado projects its child‑care subsidy funds could be exhausted by Jan. 31, putting assistance for tens of thousands of children at risk as the state explores legal options to restore cash flow.
- Illinois leaders say roughly $1 billion is at stake for programs serving about 100,000 families, and advocates report widespread anxiety even as Chicago‑area providers have not yet seen service disruptions.
- States say federal letters offered no specific evidence of fraud—Colorado received an allegation of benefits to unauthorized immigrants—while governors and providers warn of classroom closures, layoffs and parents leaving work if the freeze persists.