The federal government announced Tuesday it’ll freeze billions of dollars in child care subsidies to New York and four other states over fraud concerns. The move comes after a major daycare scam was uncovered in Minnesota.
“We have a responsibility to protect taxpayer dollars and ensure these programs serve the families they were created to help,” said Department of Health and Human Services Assistant Secretary for Children and Families Alex J. Adams in the announcement. “When there are credible concerns about fraud or misuse, we will act.”
When asked for details on the fraud allegations specific to New York, an HHS spokesperson wrote there were "serious concerns" in all five states that "warranted immediate action to prevent further potential misuse while reviews are underway."
The states affected — New York, Minnesota, California, Colorado and Illinois — are run by Democrats.
Sen. Kirsten Gillibrand (D-NY) said the freeze will hurt parents who rely on day care centers and other programs so they can go to work, and lambasted the Health and Human Services department for not providing evidence to back up the fraud allegations.
“We all agree fraud is unacceptable," she said at a virtual news conference Thursday. "It should be investigated. Those who misuse our tax dollars should be prosecuted to the fullest extent of the law, but without any substantial proof of fraud, the administration is choosing to rip funding away from thousands of child care providers and parents across our state.”
She called for the funds to be restored immediately.
Across the aisle, U.S. Representative Mike Lawler (R-NY-17) also urged the administration to reverse course in a letter to President Donald Trump and HHS Secretary Robert F. Kennedy, Jr.
Lawler wrote that while he supports efforts to root out waste, fraud and abuse through arrests, accountability and congressional oversight, "...we can and should do all of this without arbitrarily cutting off critical safety nets for the good Americans who rely on these programs and have no role in cases of fraud."
Long Island Congressmen Nick LaLota (R-NY-01) and Andrew Garbarino (R-NY-02) did not respond to requests for comments.
New York Gov. Kathy Hochul (D) said this week the state might sue the federal government over the funding freeze.
