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Federal government withholding $1 billion from Illinois meant for child care, family assistance

January 6, 2026 by Chicago Tribune

The federal government is withholding more than $10 billion in family and child care assistance money from Illinois and four other states amid concerns about fraud and misuse of the funds, the U.S. Department of Health and Human Services announced Tuesday evening.

In Illinois, about $1 billion is being frozen that would normally go toward programs that help families pay for child care, support child care workers and help pay for other services, according to Gov. JB Pritzker’s office. The administration is also withholding funds meant for California, Colorado, Minnesota and New York.

The federal government decided to freeze the funds over concerns that “these benefits intended for American citizens and lawful residents may have been improperly provided to individuals who are not eligible under federal law,” according to a federal news release.

“Families who rely on child care and family assistance programs deserve confidence that these resources are used lawfully and for their intended purpose,” said Deputy U.S. Department of Health and Human Services Secretary Jim O’Neill in the release.

Pritzker’s office quickly blasted the move Tuesday evening, accusing the Trump administration of targeting Illinois and the other states because they’re led by governors who are Democrats.

“Rather than making life easier and more affordable for our families, Donald Trump is stripping away child care from Illinois families who are just trying to go to work,” Pritzker said in a news release.

“Thousands of parents and children depend on these child care programs to help them make ends meet, and now their livelihoods are being put at risk,” Pritzker said. “This is wrong, it is cruel, and we will take every step possible to defend the kids and families depending on all of us right now.”

State agencies involved with the money have “robust” procedures and protocol to prevent, report, and address alleged fraud, and they regularly review and audit organizations that receive state and federal dollars, according to the governor’s office. The Trump Administration hasn’t provided Illinois with any detailed information or evidence about any alleged fraud, the governor’s office said.

The frozen money comes from three areas: the Child Care and Development Fund, Social Services Block Grant funds, and Temporary Assistance for Needy Families.

In Illinois, about 100,000 low-income, working families receive subsidized child care through the Child Care Assistance Program which is partly funded by Child Care and Development Block Grant, according to the governor’s office.

The Temporary Assistance for Needy Families block grant helps to support thousands of child care providers throughout the state, and the Social Services Block Grant goes toward hundreds of organizations statewide that support human service providers, according to the governor’s office.

The funds will remain frozen until The U.S. Department of Health and Human Services’ Administration for Children and Families conducts a review and determines the states are in compliance with federal requirements.

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