"Overwhelmed" Colorado families fear loss of child care aid amid federal funding freeze

Concern remains high for some Colorado families after Colorado and four other states filed a motion to block the implementation of a child care and family assistance funding freeze by the federal government.

Earlier this month, the U.S. Department of Health and Human Services froze access to three funding streams -- the Child Care and Development Fund (CCDF), Temporary Assistance for Needy Families (TANF) and the Social Services Block Grant (SSBG) -- for California, Colorado, Illinois, Minnesota and New York, citing concerns about fraud and alleged misuse of taxpayer dollars.

A federal judge has granted a temporary restraining order pausing the implementation of that freeze until Friday, when there will be a hearing for the plaintiffs' motion for a preliminary injunction.

In the meantime, Colorado families are bracing for an uncertain future.

"Us parents rely on child care so we can go to work to provide for our families," single mother Maddie Johnson told CBS Colorado.

Johnson counts on Colorado's Child Care Assistance Program to afford child care for her 3-year-old son.

"I don't have a village like other people do," Johnson said. "It's like almost two grand a month for day care, and, as a single mom ... that's not doable at all."

The Colorado Department of Early Childhood says CCCAP helped more than 27,000 children from more than 18,000 families access child care in fiscal year 2024–25.

The state program allows Johnson to pay a reduced rate for day care. It is funded by CCDF.

That is one of three federal funds the Trump administration is trying to freeze Colorado's access to, along with SSBG and TANF, which is known as Colorado Works and supports thousands of families across Colorado.

The Colorado Department of Human Services told CBS Colorado SSBG funds are used to provide a broad range of services for vulnerable Coloradans, including child welfare services. The agency added that, "Monthly cash assistance through TANF is a vital lifeline for our community. In state fiscal year 2025 alone, the program provided essential support to more than 77,000 individuals, including more than 50,000 children. We understand that these families rely on this assistance for stability, and we are working hard to protect the resources that help nearly 20,000 children under the age of six thrive."

CDHS says Colorado draws an average of $12.4 million in TANF funding and $2.4 million of SSBG funds monthly.

HHS says, across the five impacted states, the action will restrict funding totals of nearly $2.4 billion in CCDF, $7.35 billion in TANF and $869 million in SSBG.

The Administration for Children and Families sent letters to Gov. Jared Polis saying the Trump administration, "is concerned by the potential for extensive and systemic fraud." in these programs and has reason to believe Colorado is illicitly providing the benefits to illegal aliens.

According to the CCDF letter, "ACF will be conducting a thorough review of the state's use of funding for compliance and alignment with statutory requirements. ACF is placing the state on temporarily restricted drawdown of CCDF funds until additional fiscal accountability requirements are implemented and necessary information is provided for ACF to complete its review."

The letters demand extensive administrative data, eligibility verification records and oversight documentation, and says that funding restrictions will remain in place until Colorado complies and the review is completed.

Polis said in a statement to CBS Colorado, "I'm glad that the courts have intervened to prevent the federal government from withholding these funds from Colorado children and families that need them the most. Colorado will continue fighting against this unlawful attempt -- and any future attempt -- from the federal government to harm our fellow Coloradans."

The governor's statement did not include a response to allegations of fraud or misuse in these programs.

"I was very overwhelmed last week when I heard this," Johnson said.

Johnson says, without the aid, parents like her could be forced out of the workforce.

"It makes me feel like I have to make this big choice of either working full time or providing for my kiddo," Johnson said. "I fear that with this Trump freeze that it's going to take people out of the workforce, unfortunately."

While the funding freeze is on pause for now, Johnson has already moved her son to a cheaper pre-K.

"I think it's really crappy for the administration to do this to families. People send their kids to day care so they can work. Some people are more fortunate, or they get to work from home. And I think that's lovely. Not everyone has that option," Johnson said.

The Colorado Department of Early Childhood said in a statement, "CCDF is a critical federal funding source helping eligible families afford child care and supports child care providers and the early childhood workforce across Colorado. The department receives approximately $138 million annually in CCDF funding, representing approximately 22% of CDEC's total funding. This support plays a crucial role in enabling Colorado parents and caregivers to work, pursue education, or participate in job training while their children are cared for in safe, nurturing learning environment. CDEC remains committed to supporting families and child care providers statewide and advancing its mission to ensure every child in Colorado has the opportunity to thrive. CDEC and Gov. Polis will work closely with our partners to navigate this evolving situation."