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Trump admin freezes $10B in childcare funding for five Democratic states, including Colorado

COLORADO (KRDO) – The Trump administration is reportedly cutting off $10 billion in funding for childcare and social services in five Democratic-led states, including Colorado, amid fraud concerns, ABC News reports.

According to ABC News, top administration officials have confirmed to the New York Post that the freeze is in response to concerns that benefits are being given to non-citizens.

The $10 billion funding freeze, which impacts Colorado, California, Minnesota, Illinois and New York, could jeopardize programs that help hundreds of thousands of low-income families access childcare.

The announcement comes just days after the Trump administration initially said it would freeze childcare funding to all 50 states until they could verify how the funds are being spent.

That verification process is unclear, but ABC News reports that the five states impacted by the freeze are being asked to provide attendance records and inspection reports for their daycare facilities.

This comes after the administration paused around $185 million in childcare funding for Minnesota last week in response to a viral video alleging fraud at Somali-run daycares in the state.

Investigators visited the childcare facilities at the center of these allegations and reported that they were all operating as expected, but federal investigations remain ongoing, with some prosecutors estimating the scheme could involve billions in taxpayer dollars.

At this time, no evidence suggests that the four other Democratic-led states are facing similar allegations of widespread fraud.

This is a developing story and may be updated as we learn more.

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Sadie Buggle

Sadie has been a digital and TV news producer at KRDO13 since June 2024. She produces the station’s daily noon show and writes digital articles covering politics, law, crime, and uplifting local stories.

This is her first industry job since graduating from the Walter Cronkite School of Journalism in May 2024. Before that, she managed and edited for ASU’s independent student publication, The State Press.

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