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After Minnesota Fraud Allegations, HHS Orders States to Justify Child Care Spending

HHS could not offer many specifics on how the review process will play out for other states.

A preschool teacher prepares lunch for students inside a day care center. (Photo by Billy Hustace/Getty Images)

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WASHINGTON 鈥 States must now provide 鈥渏ustification鈥 that federal child care funds they receive are spent on 鈥渓egitimate鈥 providers in order to get those dollars, President Donald Trump鈥檚 administration announced. 

The Tuesday shift in policy came followingwhich prompted the U.S. Department of Health and Human Services to freeze all child care payments to the state. 

HHS could not offer many specifics on how the review process will play out for other states, but clarified that the money in question is provided through the multibillion-dollar federal Child Care and Development Fund, or CCDF. 

鈥淪tates will be required to provide documentation, such as written justification, receipts, or photographic evidence, demonstrating that funds are supporting legitimate child care providers,鈥 Emily Hilliard, a spokesperson for HHS, said in a statement to States Newsroom on Wednesday. 

CCDF provides federal funding to states, territories and tribes to help low-income families obtain child care. 

The program, administered within the Office of Child Care under HHS鈥 Administration for Children and Families, combines funding from the Child Care and Development Block Grant, or CCDBG, and the Child Care Entitlement to States, or CCES. 

Funding for CCDF in  stood at roughly $12.3 billion 鈥 comprising $8.75 billion from CCDBG and $3.55 billion from CCES. 

Head Start 鈥 a separate program that provides early childhood education, nutritious meals, health screenings and other support services to low-income families 鈥 does not appear to be affected. 

In a Tuesday  announcing the move, Health and Human Services Deputy Secretary Jim O鈥橬eill said he had 鈥渁ctivated our defend the spend system for all ACF payments鈥 and 鈥渟tarting today, all ACF payments across America will require a justification and a receipt or photo evidence before we send money to a state.鈥 

He clarified in a  shortly after that 鈥渇unds will be released only when states prove they are being spent legitimately.鈥 

Funds undergo 鈥榬egular audits鈥

鈥淔ederal funding enables millions of parents in every state and Congressional district to access and afford quality child care,鈥 Sarah Rittling, executive director of First Five Years Fund, a federal advocacy group, said in a Wednesday statement. 

Rittling added that 鈥渢hese funds are essential to the nation鈥檚 well-being, allowing parents to work while ensuring their children are cared for and safe.鈥 鈥ㄢ

She also described the reports of potential fraud as 鈥渄eeply concerning鈥 and pointed out that 鈥渟tate oversight through regular audits is required by law to ensure that every dollar intended to protect and support young children is used properly and effectively.鈥 

鈥淎t the same time, we must ensure that nothing takes away from making sure funds for child care continue to reach the children and families who depend on them,鈥 she said.

is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Minnesota Reformer maintains editorial independence. Contact Editor J. Patrick Coolican for questions: [email protected].

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