TLDRThe Trump administration is pushing to freeze federal funds for childcare and family assistance in five states, including Minnesota, New York, California, Illinois, and Colorado, over claims of potential fraud and misuse of taxpayer funds. Childcare workers argue that this freeze would be a disaster for families reliant on these services, and the impacted states have sued the Trump administration to halt the freeze. The freeze includes nearly $2.4bn through the Child Care and Development Fund, $7.35bn through the Temporary Assistance for Needy Families, and $869m through the Social Services Block Grant. The claims of fraud come in the wake of a viral video from a conservative influencer, but media outlets have debunked the allegations, finding no evidence of misuse of federal funds. The freeze has been criticized as a partisan political stunt, and the administration has not provided any evidence of fraud or justification for freezing the funds.

Source: The Guardian January 26, 2026 19:57 UTC