HHS freezes $10 billion in child care funding for 5 Democratic states, alleging fraudulent programs

January 6, 2026

A sign is displayed outside of the U.S. Department of Health and Human Services (HHS) headquarters at the Hubert H. Humphrey Building on June 2, 2025 in Washington, DC. Kevin Carter/Getty Images

(WASHINGTON) — The Department of Health and Human Services is freezing $10 billion in federal funds in five Democrat-run states over allegations of fraudulent child care programming, an HHS official confirmed to ABC News.

The HHS official confirmed that the five states are California, Colorado, Illinois, Minnesota and New York.

This is a developing story. Please check back for updates.

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HHS freezes $10 billion in child care funding for 5 Democratic states, alleging fraudulent programs

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