"Zoom in: Funding for the Child Care Development Fund and Temporary Assistance for Needy Families (TANF) will be held back. The child care money is used to subsidize care for low-income families, and TANF is monthly cash assistance for very poor people. More than $7 billion of the funds were meant for TANF. 1.4 million children around the country are supported by federal child care funding."
"The big picture: A YouTube video claiming to show empty child care centers in Minnesota - posted the day after Christmas - has spurred the administration to action. Spending freezes may extend beyond blue states. Already, Texas child care centers have been warned over potential delays, according to a local news report. And providers in West Virginia are also reportedly on edge."
Federal payments for the Child Care Development Fund and Temporary Assistance for Needy Families (TANF) to California, Colorado, Illinois, Minnesota and New York are being suspended. The hold is linked to suspected fraud and to payments made to undocumented immigrants. More than $7 billion earmarked for TANF and child care subsidies that support about 1.4 million children nationwide are affected. A viral YouTube video claiming to show empty child care centers in Minnesota prompted heightened administrative scrutiny. States must now provide additional administrative data, including attendance records, inspection reports and parent complaints, before accessing funds. Spending freezes may spread to additional states.
Read at Axios
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