NYS child care, social services funding freeze: Who's impacted and when will the money run out?
Marks of Excellence Day Care in Amityville is among the providers that could be impacted by the federal funding freeze. Credit: Newsday/ Alejandra Villa Loarca
The state will not be able to cover "hundreds of millions of dollars" in expenses for social services like child care, emergency housing and public assistance if a freeze imposed by the Trump administration is not lifted by the end of the month, a spokesperson for Gov. Kathy Hochul's office said Thursday.
The U.S. Department of Health and Human Services announced Tuesday that it was withholding $10 billion in child care and family assistance subsidies to five Democrat-led states, including New York, as it conducts a review amid claims of fraud. The move followed allegations of fraud at several child care centers in Minnesota.
At a virtual press conference Thursday, Sen. Kirsten Gillibrand (D-N.Y.) told reporters, “This funding freeze is leaving our most vulnerable families and child care providers in a devastating limbo, not knowing if or when they will lose the assistance that they rely on to send their children to day care and keep their businesses running."
Attorney General Letitia James said in a release Thursday night she is leading a coalition of four attorneys general in suing the Trump administration in the Southern District of New York, seeking a federal court order preventing the freeze and declaring it unlawful.
Here's what to know about the controversy:
What programs would be impacted by the freeze?
HHS has said it was pausing funds to three programs overseen by the agency's Administration for Children and Families: Temporary Assistance for Needy Families, the Child Care and Development Fund and the Social Services Block Grant.
New York uses more than $3.6 billion yearly to run these programs — $2.7 billion for Temporary Assistance for Needy Families, which serves more than 202,000 New Yorkers yearly; $832 million for the Child Care and Development Fund, which serves 170,000 children annually; and $93 million for the Social Services Block Grant, which serves 164,000 children and 52,000 vulnerable adults.
The funding goes toward services such as public assistance, child care, emergency housing, employment services and domestic violence services. It is also used for emergency payments to families and children, adoption services and foster care and child welfare investigations.
What information is the federal government requesting?
As part of its review of the Child Care and Development Fund, the government is asking for attendance documentation for "subsidized child care services," with personal information redacted, according to a letter sent to Hochul that was obtained by Newsday.
For the Temporary Assistance for Needy Families and Social Services Block Grant program, the government is requesting detailed administrative data such as recipients' names, Social Security numbers and dates of birth from at least 2022 to 2025. The deadline to submit this information is Jan. 20.
Michael Martino, a spokesman for Suffolk Executive Edward P. Romaine, said the county already compiles attendance information for the child care providers it subsidizes. He said the data should be accessible statewide, if all counties operate the same way.
A spokesman for Nassau County Executive Bruce Blakeman did not return requests for comment.
Child care advocates said detailed attendance records are maintained by providers and turned over to the counties, but redacting each record will be time-consuming and could cause critical delays.
"There's employees to pay, there's bills to pay, it's going to be virtually impossible to support these families ... especially because we don't know how long this whole thing is going to take," said Yohaina Martinez, director of Little Feet Big Steps Daycare in North Babylon.
Smita Daniel, executive director of the Child Care Council of Nassau, said in an email that providers "navigate a significant amount of paperwork and compliance obligations." She is concerned about the consequences of a freeze on families and providers.
"Without timely reimbursements, child care centers face payroll and operating deficits. Some may need to furlough staff, reduce hours or shut down," she said.
Has there been fraud in these three programs?
The Administration for Children and Families claimed in letters to Hochul that it "has reason to believe" the state is illegally providing benefits to undocumented immigrants. The letters also claim fraud concerns “were heightened by recent federal prosecutions and additional allegations,” without providing any specific examples in New York.
At an unrelated press conference Thursday, Hochul said, “There is no evidence of fraud here in the State of New York."
She noted that each county has a fraud prevention strategy in place and that there is a hotline to report concerns. For instances where fraud does occur, she said, “There's claw back provisions, there's prosecution, there's always action taken. We don't tolerate this.”
Lorena Mongelli has been reporting for Newsday since 2021. Prior to that, she covered breaking news at the New York Post.
