Trump Administration Freezes Child Care Funding in New York and Other Democrat-Led States
The U.S. Department of Health and Human Services (HHS) has announced a temporary freeze on federal funding for child care and certain social service programs in several Democrat-led states, including New York, California, Colorado, Illinois, and Minnesota. The freeze affects programs such as the Child Care Development Fund (CCDF), Temporary Assistance for Needy Families (TANF), and the Social Services Block Grant.
According to reports, letters notifying state authorities of the funding pause were sent on January 5, 2026. The decision comes as the HHS rescinds several rules introduced during the Biden administration, which required states to provide upfront payments to child care providers before verifying attendance.
Under the new guidance, child care providers will return to attendance-based billing, upfront payments will no longer be mandatory, and states will regain flexibility with vouchers.
New York Governor Kathy Hochul and state officials recently met with local leaders to discuss the potential impacts of the funding freeze, highlighting concerns over child care affordability and public safety.
New York Senator Kirsten Gillibrand strongly condemned the move, calling it a politically motivated action that punishes vulnerable children. In a statement, she said, “Using government power to harm children in need is immoral. These cuts threaten the most at-risk Americans, and I urge the administration to restore funding immediately.”
Experts warn that the freeze could lead to increased costs for families and strain local child care providers already facing financial pressures. State officials are reviewing options to mitigate potential disruptions while urging federal authorities to reconsider the decision.
