Trump Accused Of Forcing Women Out Of The Workforce After Freezing Federal Childcare Payments

The Trump administration's abrupt freeze on federal childcare payments has provoked intense criticism from state officials, legal experts and family advocacy groups, who warn the decision will strand working parents, particularly women, and jeopardise access to essential childcare services.

Trump's Department of Health and Human Services (HHS) announced at the end of December that it had activated a new 'defend-the-spend system' for childcare funding, requiring states to provide detailed verification, including attendance records, licences and receipts, before any federal payments are released.

The move, first presented as a targeted response to alleged fraud in Minnesota's childcare system, has since expanded into a nationwide demand for heightened documentation from all 50 states.

Nationwide Freeze Widens After Fraud Allegations

Deputy HHS Secretary Jim O'Neill and Assistant Secretary Alex Adams outlined the new requirements in a video message, announcing that the Administration for Children and Families (ACF) would withhold childcare funds until states demonstrate that every dollar is spent legitimately.

O'Neill stated that the department had 'activated our defend-the-spend system for all ACF childcare payments across America' and would now demand 'justification, receipt or photo evidence before we make a payment'.

Initially, the freeze focused on Minnesota after a viral video and social media claims alleged widespread fraud in daycare centres, many within Somali-American communities. Federal prosecutors have been investigating long-running fraud schemes in the state for years, including large pandemic-era fraud cases.

Minnesota's Governor, Tim Walz, condemned the action on social media as politically motivated, arguing that state authorities had already been working to combat fraud.

The shift from a state-level concern to a nationwide policy has alarmed officials across the United States. State governments now face significant administrative hurdles to secure millions of pounds of childcare funding essential for parents and providers.

Impact on Families and Workforce Participation

Critics warn that the sudden disruption of federal childcare payments will hit working families, particularly women, hardest.

Childcare subsidies under the Child Care and Development Fund enable millions of low-income families to pay for daycare, enabling parents to work or seek employment. Without timely payments, many childcare providers risk closure or reduced hours, leaving parents with no affordable care options.

Economic research consistently shows that access to affordable childcare significantly impacts labour force participation among women, who often shoulder disproportionate caregiving responsibilities. Although federal data specific to this freeze is still emerging, similar disruptions, such as the Head Start funding pause earlier in 2025, caused closures and layoffs that forced some parents to reduce work hours or withdraw entirely from the workforce.

Advocacy groups have described the policy as 'illegal' and harmful, arguing that childcare providers and families cannot afford sudden payment stops. The Child Care for Every Family Network reported that nearly 20,000 children and families were affected by funding delays in the first week of the freeze and that centres struggled to pay rent, payroll and other costs without clear guidance on resumption.

Some critics frame the freeze as part of a broader pattern of funding delays under the Trump administration that have strained childcare infrastructure. Senator Tammy Baldwin noted that earlier federal freezes on Head Start funding forced centres to shutter and left families scrambling for child care.

Childcare Providers Caught in the Crossfire

Childcare centre operators report heightened anxiety and financial risk. Many small providers operate on tight margins and rely on steady federal subsidy flows to pay staff and maintain facilities. Funding interruptions make budgeting nearly impossible and threaten closures that would have ripple effects across local economies.

Providers also face the immediate challenge of assembling and submitting the detailed documentation now required under the new HHS directives. The added administrative burden is already stretching thin operational capacities, particularly among centres that lack dedicated compliance staff.

Without clear timelines for fund release, some families are weighing employment decisions against childcare availability, with many considering cutting work hours due to unforeseen care gaps.