Overview
- OMB confirmed a roughly $10 billion hold on child care and related family-support funds for California, Colorado, Illinois, Minnesota and New York, with added documentation demands.
- HHS formally moved to restore attendance-based billing, end upfront payments and reemphasize parent-directed vouchers, with a 30-day public comment period before the changes take effect.
- CCDF payments to Minnesota remain frozen as state officials expand on-site compliance visits with the Bureau of Criminal Apprehension and investigate about 55 providers.
- HHS says states must submit administrative data and provide justification such as receipts or photographic evidence to show funds support legitimate providers before money is released.
- Several states that already reimburse based on attendance, including North Carolina and Ohio, report limited immediate impact, while advocates warn payment delays could strain providers and reduce access for low-income families.