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The Trump administration is moving to freeze more than $10 billion in federal child care and social services funding to five Democrat-led states amid concerns taxpayer dollars were improperly diverted to non-citizens, according to a report.
Officials reportedly told The New York Post that the Department of Health and Human Services (HHS) will freeze funding from the Child Care Development Fund (CCDF), the Temporary Assistance for Needy Families (TANF) program, and the Social Services Block Grant, affecting California, Colorado, Illinois, Minnesota, and New York over concerns the benefits were fraudulently funneled to non-citizens.
More than $7.3 billion in TANF funding would be withheld from the five states, along with nearly $2.4 billion from the CCDF and another $869 million from the Social Services Block Grant.
The funding pauses were expected to be announced in letters sent to state officials Monday, citing concerns that benefits were improperly directed to non-U.S. citizens.
ABBOTT ORDERS COMPREHENSIVE FRAUD PROBE INTO TEXAS CHILD CARE FUNDING AFTER MINNESOTA SCANDAL
The Department of Health and Human Services (HHS) will freeze funding from the Child Care Development Fund (CCDF), the Temporary Assistance for Needy Families (TANF) program, and the Social Services Block Grant, affecting California, Colorado, Illinois, Minnesota, and New York over concerns the benefits were fraudulently funneled to non-citizens, according to a report. (Kayla Bartkowski/Getty Images)
A 2019 audit by the Department of Health and Human Services Office of Inspector General found that New York State improperly claimed $24.7 million in federal reimbursement for child care subsidies paid to New York City that did not comply with program rules.
The audit attributed the overbilling to system errors and oversight failures – not criminal fraud – and state officials agreed to refund the funds and implement corrective controls, according to the…
