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 announced Tuesday that it is pausing billions in funding to five Democrat‑led states: Colorado, California, Illinois, Minnesota and New York. Federal officials 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 HHS Jim O’Neill. “This action reflects our commitment to program integrity, fiscal responsibility, and compliance with federal requirements.”
The freeze affects three specific programs overseen by the Administration for Children and Families. Those programs are the Child Care and Development Fund ($2.4 billion), Temporary Assistance for Needy Families ($7.35 billion), and the Social Services Block Grant ($869 million). In total, more than $10 billion in funding has been paused for the affected states, pending further review.
Many Democrats criticized the action, including U.S. Sen. Michael Bennet of Colorado. “Donald Trump has declared war on Colorado,” Bennet said on social media 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.”
The funding freeze comes amid national scrutiny over suspected widespread fraud in taxpayer‑funded programs, including child care centers. According to the Department of Health and Human Services, officials are also concerned that benefits intended for American citizens and lawful residents may have been improperly provided to individuals not eligible under federal law.
Minnesota has been the focal point of the fraud scandal, though similar concerns are emerging in other states. Fallout in Minnesota has included federal funding cuts to daycare centers and Minnesota Gov. Tim Walz announcing he will not seek reelection this year.
Lawmakers in other states affected by the freeze are requesting audits of their own programs to guard against fraud.
The three affected programs help fund essential services, including child care costs, temporary cash aid for low‑income families to cover food, housing, and utilities, and job training and work supports.
Illinois Gov. J.B. Pritzker, a Democrat, joined lawmakers from the other impacted states in condemning the pause. “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 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 Illinoisans.”
The Trump administration said it may restore the funding once states are compliant and submit “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.”
