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Trump Administration Freezes Child Care Funds to Illinois over Fraud Concerns

The Trump Administration halted $10 billion in child care funds to five Democratic-led states over alleged fraud, impacting over 152,000 children in Illinois alone, officials said.

  • On Tuesday, the Trump Administration froze about $10 billion across California, Colorado, Illinois, Minnesota and New York, with letters late Tuesday halting Child Care and Development Block Grant, Social Services Block Grant and TANF funds.
  • HHS cited ongoing investigations into alleged fraud in Minnesota day care centers run by people with family roots in Somalia, while a White House budget office official said states were "pouring money out" to ineligible people.
  • Illinois' CCAP serves around 100,000 families and more than 152,000 children, funded partly by the CCDBG, while SSBG and TANF support 275 organizations and thousands of providers.
  • Child-Care providers in Chicago warned they might cut staff or lose families if funding delays continue, as Illinois Action for Children said the impact would be immediate and harmful.
  • Several states reported they received no guidance or detailed evidence from the administration, and critics including Sen. Kirsten Gillibrand said the move looks political; NBC News has not independently verified the claims.
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MYSTATELINE broke the news in Rockford, United States on Tuesday, January 6, 2026.
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