What to know about Trump administration freezing federal child care funds

People gather for a news conference at the state capitol in St. Paul, Minn., on Wednesday, Dec. 31, 2025. (AP Giovanna Dell'Orto)

The Trump administration has said it is freezing child care funds to all states until they provide more verification about the programs in a move fueled by a series of fraud schemes at Minnesota day care centers run by Somali residents.

All 50 states will be impacted by the review, but the Republican administration is focusing most of its ire on the blue state of Minnesota and is calling for an audit of some of its centers.

Minnesota Democratic Attorney General Keith Ellison said in a statement Wednesday that he was “exploring all our legal options to ensure that critical childcare services do not get abruptly slashed based on pretext and grandstanding.”