Families and child care providers across Colorado could see changes in the availability of child care and other support programs in the coming weeks unless a coalition of state attorneys general obtains a preliminary injunction against the federal Administration for Children and Families’ (ACF’s) funding freeze on Colorado and several other states or the federal administration reverses its decision.
On Jan. 5 and 6, the administration sent letters to California, Colorado, Illinois, Minnesota and New York announcing that the ACF is freezing funding for Child Care Development Fund (CCDF), Temporary Assistance to Needy Families (TANF) and Social Services Block Grants (SSBG) due to potential fraud.
On Jan. 9, Colorado Attorney General Phil Weiser announced he had joined four other attorneys general in suing the Trump administration to stop the withholding of more than $10 billion in what are considered critical funds to their states that help ensure low-income families can afford child care, housing, food and more.
Weiser and the coalition argue that freezing these funds will immediately jeopardize some of the most important anti-poverty programs in the states, putting vulnerable families at risk.
A press release from Weiser’s office explains, “The Child Care and Development Fund program provides $2.4 billion in federal funding annually to support the plaintiff states’ programs that provide low-income families with funding for childcare, so that those family members can work or go to school. In 2025, Colorado received $140 million in federal funds from this program. TANF is a block grant program that provides more than $7 billion in federal funds annually to the plaintiff states, which in turn provide cash assistance and non-cash benefits to low-income families with children. In 2023, Colorado received $135 million in TANF funds.”
It adds, “If implemented, the funding freeze would be devastating for families in the coalition’s states. Families would lose access to reliable childcare, forcing parents and caregivers into an impossible choice of either missing work or leaving children in a potentially unsafe environment. Childcare providers would lose essential funding, and even children who do not receive ACF-funded care could lose access if facilities are forced to reduce staff or shut down. Employers would lose valuable workers, hurting states’ economies, and families would lose critical cash assistance to help them afford essentials like gas, groceries, and rent.”
The states are seeking a court order declaring the funding freeze illegal and preventing it from being implemented.
On Jan. 9, the U.S. District Court for the Southern District of New York granted a temporary restraining order that pauses implementation of the Jan. 6 letter issued by the ACF, with that order lasting for 14 days — until Jan. 23.
On Friday, Jan. 23, another U.S. District Court judge extended the order by another 14 days, through Feb. 6, to allow for more time to consider the motion for preliminary injunction.
Prior to the extension, on Jan. 22, Colorado U.S. Sens. Michael Bennet and John Hickenlooper, and Colorado U.S. Reps. Brittany Pettersen, Jason Crow, Gabe Evans, Jeff Crank, Diana DeGette and Joe Neguse sent a bipartisan letter urging Department of Health and Human Services’ Secretary Robert F. Kennedy Jr. to work with Colorado to release over $300 million in funding for the programs.
“These programs, CCDF, TANF, and SSBG, provide essential services to families most in need, and we are concerned they will be unfairly affected by this decision. We respectfully urge you to work with Colorado to ensure this funding gets to families and communities across the state in an expedient manner,” wrote the lawmakers.
In the letter, the lawmakers emphasize the importance of the funding to low-income families.
It notes CCDF funds the Colorado Child Care Assistance Program (CCCAP), which provides care for more than 27,000 children across the state. TANF funds support for more than 50,000 children, nearly half of whom are under the age of 6. SSBG provides funding for prevention and intervention services to around 14,400 kids, out-of-home placements for more than 6,000 children, and to Colorado’s Division of Child Welfare, where they conduct more than 30,000 child maltreatment investigations.
“In a state like Colorado, the fifth most expensive state for childcare, these dollars have a real effect. They help lower costs for families and support the broader economy. This is especially important as families have faced rising costs over the past several years. While we support strengthening the integrity of these programs when needed, the Department states in its letter, without providing evidence, that Colorado has unlawfully diverted federal resources away from eligible families and asks the state to implement additional accountability requirements to improve compliance. Colorado has fiscal accountability systems and internal controls in place to prevent fraud and is willing to work with the Administration to determine if and where improvements are needed. We encourage the Department and Colorado to work together on a path forward to restore funding. Any lapse in funding from these programs would have serious consequences for many childcare centers operating in compliance with the updated guidance and the Colorado families depending on these programs,” conclude the lawmakers.
In a Jan. 23 fact sheet on federal child care funding obtained by The SUN, the Colorado Department of Early Childhood (CDEC) estimates that if federal funding does not continue, the CCCAP funds will be exhausted by Feb. 28.
The fact sheet notes 2,517 total providers participate in CCCAP.
The update states, “Should the Administration for Children and Families (ACF) not reimburse Colorado for any remaining CCDF expenses this year, the potential shortfall could be approximately $82 million over the remainder of this fiscal year, and would impact programs as soon as February 28, 2026.”
randi@pagosasun.com
>