Trump Administration Freezes All State Childcare Payments Nationwide
US Childcare Funds Frozen by Trump Administration

The administration of former President Donald Trump has abruptly frozen all federal childcare payments to every state in the US, according to a report by ABC News. The move dramatically escalates a decision taken just hours earlier to withhold funds solely from Minnesota.

Funding Halted Until States Prove 'Legitimate' Spending

An unnamed official within the Department of Health and Human Services (HHS) confirmed the nationwide freeze to ABC News on Wednesday, 3 March. The official stated that states' funds will be released "only when states prove they are being spent legitimately."

HHS spokesperson Andrew Nixon reinforced this position, telling ABC News that "it's the onus of the state" to demonstrate that taxpayer dollars are being used for proper purposes. Recipients will now be required to submit extensive documentation, including attendance records, licensing reports, and details of any complaints or investigations.

Minnesota Freeze Preceded National Action

The broader freeze was preceded by a targeted action against Minnesota. On Tuesday evening, HHS deputy secretary Jim O'Neill and assistant secretary Alex Adams announced they were withholding childcare funding for the state.

This decision was reportedly in response to a viral video circulated by a right-wing influencer, which alleged massive fraud at daycare centres operated by Somali Americans in Minneapolis. Other news outlets have not been able to verify the claims made in the footage.

Allegations of welfare fraud in Minnesota have been investigated for years, with charges brought against one alleged scheme during the Biden administration.

Political Backlash and Context of Xenophobic Rhetoric

The funding freeze has ignited immediate political controversy. Minnesota's Democratic Governor, Tim Walz, who is seeking re-election this year, condemned the move. He described it as part of "Trump's long game" in a post on social media platform X, asserting that the state has spent years cracking down on fraud.

The action occurs against a backdrop of intensified xenophobic rhetoric from Trump targeting Somali Americans. In recent weeks, he has repeatedly attacked Minnesota Representative Ilhan Omar, who is Somali American, using derogatory language and suggesting refugees should "go back to where they came from."

The HHS did not immediately respond to a request for comment from The Guardian regarding the report of a nationwide freeze.