Trump administration rolls back child care funding rules amid fraud claims

The Trump administration announced it will rescind several Biden-era rules governing the Child Care and Development Fund, a major federal child care programme.

The US Department of Health and Human Services said the changes follow concerns over fraud and come days after a temporary freeze on CCDF funding.

The CCDF provides subsidies to states, tribes and territories to help low-income families access affordable child care.

HHS said it plans to restore attendance-based billing, end advance payments to providers and prioritise vouchers over guaranteed slots.

When controls are not in place, bad actors can bill for children who aren't there. Families and taxpayers deserve proof that services are being delivered to children.

Alex Adams said.

Child care advocates argued that existing safeguards already address fraud risks within the programme.

What we know to be true is that there are longstanding program integrity requirements that have been in place and are regularly updated.

Susan Gale Perry said.

HHS confirmed it froze CCDF funding over the holidays and said funds would be released after states submit additional administrative data.

Advocates warned the lack of clarity around the freeze could disrupt services and threaten child care providers operating on thin margins.

The policy shift follows viral allegations of fraud involving Minnesota day care centres, though no definitive proof has been presented.