Article Summary
- The Trump administration has frozen distribution of about $10 billion in federal funding for five Democratic-led states, including about $1 billion for Illinois.
- States covered by the freeze now must submit detailed documentation justifying all expenses under the programs before any funds will be distributed.
- HHS says the action is based on concerns about widespread fraud and misuse of funds, including the possibility that funds are flowing to noncitizens who are not eligible to receive benefits, although it provided no evidence of such fraud.
- In Illinois, the freeze affects funding for subsidized child care services and other programs serving needy families, seniors and people with disabilities.
This summary was written by the reporters and editors who worked on this story.
SPRINGFIELD – The Trump administration announced late Tuesday that it was freezing distribution of about $10 billion in federal child care and family assistance funds to five Democratic-led states, including Illinois.
It will now require those states to submit detailed justification and documentation before any of the federal funds are released.
The action applies to three programs overseen by the Administration for Children and Families, a division within the U.S. Department of Health and Human Services: the Child Care and Development Fund; Temporary Assistance for Needy Families, or TANF; and the Social Services Block Grant program.
Other states whose funds are being frozen include California, Colorado, Minnesota and New York.
Gov. JB Pritzker’s office said the action affects about $1 billion in funding for programs in Illinois. Those include subsidized child care services for low-income working families as well as licensed child care providers that are partially funded through block grants under the Temporary Assistance for Needy Families program.
Attorney General Kwame Raoul’s office in a statement called the move “particularly callous” amid high costs of living, and said “tens of thousands of Illinois families” depend on services affected by the freeze.
“We are committed to protecting this critical funding and are evaluating all possible options to do just that,” Raoul’s office said in a statement.
Pritzker’s office said about 100,000 Illinois families, including more than 152,000 children, are served through the Illinois Child Care Assistance Program, which receives funding through the Child Care and Development Block Grant program.
The TANF block grant program supports licensed child care providers in every county in Illinois. The funds are used to support the Child Care Assistance Program as well as the Illinois Department of Children and Family Services’ licensing work.
Pritzker’s office said the Social Services Block Grant supports 275 organizations in Illinois that provide health and welfare services to children, seniors, people with disabilities, and people facing poverty and food insecurity.
Feds cite fraud concerns
In its announcement Tuesday, the Department of Health and Human Services said the action was in response to “serious concerns about widespread fraud and misuse of taxpayer dollars in state-administered programs.”
The agency also said it had “identified concerns that these benefits intended for American citizens and lawful residents may have been improperly provided to individuals who are not eligible under federal law.”
Although HHS cited no specific examples of such fraud and abuse, Minnesota’s child welfare system has been the subject of a widespread fraud investigation that has resulted in charges against dozens of individuals and prompted Democratic Gov. Tim Walz to give up his bid for reelection to a third term.
“Families who rely on child care and family assistance programs deserve confidence that these resources are used lawfully and for their intended purpose,” Deputy HHS Secretary Jim O’Neill said in a statement. “This action reflects our commitment to program integrity, fiscal responsibility, and compliance with federal requirements.”
Pritzker issued a statement Tuesday evening condemning the funding freeze and emphasizing the department’s anti-fraud policies and reporting protocols.
“Rather than making life easier and more affordable for our families, Donald Trump is stripping away child care from Illinois families who are just trying to go to work,” he said. “Thousands of parents and children depend on these child care programs to help them make ends meet, and now their livelihoods are being put at risk. This is wrong, it is cruel, and we will take every step possible to defend the kids and families depending on all of us right now.”
Capitol News Illinois is a nonprofit, nonpartisan news service that distributes state government coverage to hundreds of news outlets statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.
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