Feds freeze $10B in aid to Colorado, four other states

Feds freeze $10B in aid to Colorado, four other states

The Trump administration froze certain federal funding to Colorado this week amid growing national concerns about fraud in government-funded programs.

The U.S. Department of Health and Human Services made the announcement on Tuesday. The freeze targets billions in funding to five Democrat-led states: Colorado, California, Illinois, Minnesota and New York.

The federal government cited concerns about “widespread fraud and misuse of taxpayer dollars in state-administered programs.”

“Families who rely on child care and family assistance programs deserve confidence that these resources are used lawfully and for their intended purpose,” said Deputy Secretary of DHHS Jim O’Neill. “This action reflects our commitment to program integrity, fiscal responsibility, and compliance with federal requirements.”

Funding was frozen to three specific programs which are overseen by the Administration for Children and Families, which is part of the department. Those programs are the Child Care and Development Fund ($2.4 billion), Temporary Assistance for Needy Families ($7.35 billion), and Social Services Block Grant ($869 million).

That means over $10 billion in funding has been paused to those states, pending “further review,” according to DHHS.

Many Democrats have spoken out against the pause, including U.S. Sen. Michael Bennet, D-Colorado.

“Donald Trump has declared war on Colorado,” Bennet said in a post on social media on Tuesday. “He is now robbing thousands of vulnerable Colorado families of the critical support they need to afford food, housing and health care. I will pursue all available options to ensure that Trump’s latest political attack against our state is stopped.”

This freeze comes following weeks of national turmoil over suspected widespread fraud in a number of different taxpayer-funded programs – including child care centers.

According to the department, it also has “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.”

Minnesota has been the epicenter of the fraud scandal, though it is slowly spreading to other states. So far, fallout in Minnesota includes federal funding cuts to day care centers and Gov. Tim Walz announcing he will not run for reelection this year.

Lawmakers in many other states are also requesting audits of their own state’s programs to ensure against fraud.

The three programs affected help fund child care costs and even provide temporary cash aid to low-income families for food, housing, and utilities, along with job training and work support.

Illinois Gov. JB Pritzker, a Democrat, joined lawmakers from the other affected states in saying that they will fight this funding freeze.

“Rather than making it more affordable for families, Trump is stripping away child care from those just trying to go to work,” he said on social media on Tuesday. “Thousands depend on these programs, and now their livelihoods are at risk. It’s wrong and cruel — we’ll take every step possible to defend Illinoisians.”

The Trump administration said it will consider restoring the funding once the states are compliant and submit a “justification and receipt documentation.”

“We have a responsibility to protect taxpayer dollars and ensure these programs serve the families they were created to help,” said Assistant Secretary for Children and Families Alex J. Adams. “When there are credible concerns about fraud or misuse, we will act.”

Leave a Comment





Latest News Stories

montgomery county Graphic Logo

County Engineer Raises Concerns Over “Irresponsible” Bridge Contractor

Montgomery County Board Meeting | December 9, 2025 Article Summary: The Montgomery County Board and its Roads & Bridges Committee addressed serious performance issues regarding a contractor currently working on...
montgomery county Graphic Logo.2

Board Approves New Labor Contracts for Circuit Clerk, Assessment Employees

Montgomery County Board Meeting | December 9, 2025 Article Summary: The Montgomery County Board approved two new collective bargaining agreements covering employees in the Circuit Clerk’s and Supervisor of Assessments’...
Litchfield Park-Graphic Logo.4

Litchfield Park District Weighs Contracting Concrete Work for Facility Upgrades

Litchfield Park District Meeting | Jan. 7, 2026 Article Summary: The Litchfield Park District Board of Commissioners discussed infrastructure updates during their January meeting, specifically regarding delays with the new...
Meeting Briefs

Meeting Summary and Briefs: City of Litchfield for January 6, 2026

City of Litchfield Meeting | January 6, 2026 The Litchfield City Council met on Tuesday, January 6, 2026, for a session dominated by infrastructure and traffic concerns. The council rejected...
Retirements and resignations to impact midterms as balance of power at stake

Retirements and resignations to impact midterms as balance of power at stake

By Andrew RiceThe Center Square Over the past several months, politicians once regarded as central to their party have bowed out of reelection campaigns or resigned from their positions altogether....
U.S. Supreme Court to hear anti-oil cases with energy costs on the line

U.S. Supreme Court to hear anti-oil cases with energy costs on the line

By Andrew RiceThe Center Square Energy advocates have been warning against green energy demands driving up prices across the country. As anti-oil and gas activists seek legal pathways to straddle...
Constitutional concerns raised over Illinois' first civil hate crime case

Constitutional concerns raised over Illinois’ first civil hate crime case

By Catrina Barker | The Center Square contributorThe Center Square (The Center Square) – A former Illinois attorney general candidate says the state’s first civil hate crime lawsuit, while based...
Litchfield Logo Graphic.4

Residents Voice Frustrations Over Oil and Chip Street Conditions

City of Litchfield Meeting | January 6, 2026 Article Summary: Several residents approached the Litchfield City Council to complain about the poor condition of streets following recent oil and chip...
Newsom predicts smaller budget shortfall than state agency

Newsom predicts smaller budget shortfall than state agency

By Madeline ShannonThe Center Square In his proposed budget, California Gov. Gavin Newsom is predicting a shortfall of $2.9 billion. That's much less than the $18 billion shortfall projected by...
Colorado ordered to pay $5.4M after abortion law blocked

Colorado ordered to pay $5.4M after abortion law blocked

By Elyse ApelThe Center Square Colorado must pay back legal fees after it was sued for a law banning abortion pill reversals, a federal court ruled this week. The state...
Four Republicans certified for primary to take on Pritzker

Four Republicans certified for primary to take on Pritzker

By Greg Bishop | The Center SquareThe Center Square (The Center Square) – The Republican primary election for who will take on Gov. J.B. Pritzker in November is set. Democrats...
Illinois quick hits: State sues over frozen funds; Nicor Gas seeks rate hike

Illinois quick hits: State sues over frozen funds; Nicor Gas seeks rate hike

By Jim Talamonti | The Center SquareThe Center Square State sues over frozen funds Illinois is one of five states suing the Trump administration over a freeze of more than...
Treasury, IRS ramp up investigation into Minnesota fraud

Treasury, IRS ramp up investigation into Minnesota fraud

By Morgan SweeneyThe Center Square The administration continues to ramp up its response to the massive social services fraud in Minnesota, with Treasury Secretary Scott Bessent enumerating steps his department...
Tariff authority decision still awaited from Supreme Court

Tariff authority decision still awaited from Supreme Court

By Brett RowlandThe Center Square Tariff authority by second-term Republican President Donald Trump was not decided by the U.S. Supreme Court on Friday, meaning the federal government can continue to...
Minneapolis schools offer remote learning while ICE operations continue

Minneapolis schools offer remote learning while ICE operations continue

By J.D. DavidsonThe Center Square Minneapolis Public Schools can choose remote learning for at least a month in the wake of the shooting of Renee Good by an ICE officer...