The Trump administration has temporarily halted federal funding for child care providers in Missouri, citing the need for detailed justification of payment requests amid broader national concerns over fraud and recent political events, impacting over 1,700 providers in the state.
The Department of Health and Human Services has frozen $10 billion in child-care funding for five Democratic-led states due to allegations of fraud, impacting families and raising political tensions amid ongoing investigations and accusations of misuse of funds.
Child care providers in Minnesota warn that the Trump administration's freeze on federal funding, prompted by fraud allegations linked to a viral video, threatens to shut down many centers, especially those serving low-income families, amid ongoing investigations and political tensions.
The Department of Health and Human Services has frozen all child care funding for Minnesota, citing allegations of fraud and misuse of funds by daycare centers, prompting a demand for a comprehensive audit and new fraud-reporting measures, amidst political tensions and investigations into the scandal.
The expiration of pandemic emergency relief funds from the American Rescue Plan Act (ARPA) on September 30 could lead to the closure of up to 70,000 child care centers and the loss of child care for as many as 3.2 million children. The funding had helped stabilize the child care industry by increasing pay for workers and keeping costs lower for parents. Without the funding, experts warn that parents may have to cut back on work or pay higher fees for child care, highlighting the need for increased federal support in the child care sector.
The expiration of nearly $24 billion in federal aid for daycare centers and preschools on September 30 is causing concern for the child care system, which has been crucial in stabilizing the economy and getting people back to work. Advocates warn that the funding cliff could result in rising prices and limited options for working families, potentially leading to job losses and longer waiting lists for child care facilities. The Biden administration has not prioritized the child care program in year-end funding negotiations, frustrating advocates who have sought up to $16 billion in replacement funding. The lack of immediate funding support may hinder the post-pandemic recovery and impact Biden's economic record.