Federal freeze targets childcare money in Colorado and four other states

By Emily Peck | Axios

The Trump administration says it is freezing $10 billion in funds for child care and poor families in five blue states, the Office of Management and Budget confirmed to Axios Monday.

Why it matters: The White House is pointing to reports of social services fraud in Minnesota to threaten funding for child care around the country.

• Child care providers are bracing for a slowdown in funds and the possibility of cuts that threaten their ability to operate. That could create wider issues, as millions of parents rely on child care to get to their jobs.

Where it stands: Funds are being suspended for California, Colorado, Illinois, Minnesota and New York, according to the New York Post, which earlier reported the news.

• The hold on funds is due to fraud and giving money to undocumented immigrants, per an OMB official.
• The official shared links to reports of fraud in a few of these states from the past few years, many of which have already been prosecuted or charged.

READ THE FULL STORY AT AXIOS