The Landscape in Maryland
In fiscal year 2025, Maryland received $189.4 million from federal grants that are now subject to a new “justification” requirement introduced by the Trump administration, according to data from the Department of Health and Human Services Office of Child Care.
WASHINGTON — As part of a new directive from the administration of President Donald Trump, states are now mandated to provide a “justification” for the federal child care funds they receive. This means they must demonstrate that the money is being allocated to “legitimate” child care providers before accessing these funds.
This policy change, announced on Tuesday, stems from allegations of fraudulent activities within child care programs in Minnesota, which led the U.S. Department of Health and Human Services (HHS) to suspend child care payments in the state.
While HHS has not provided extensive details about how this review process will be implemented across other states, they clarified that this funding originates from the substantial federal Child Care and Development Fund (CCDF).
“States will need to submit documentation — such as written justification, receipts, or even photographic evidence — to show that the funds are supporting credible child care providers,” stated Emily Hilliard, a spokesperson for HHS, in a press release to States Newsroom on Wednesday.
Understanding the CCDF
The CCDF is designed to provide financial support to states, territories, and tribes, ensuring that low-income families have access to child care services.
This federal program, which operates within the Office of Child Care under HHS’ Administration for Children and Families, combines resources from the Child Care and Development Block Grant (CCDBG) and the Child Care Entitlement to States (CCES).
For fiscal year 2025, the total funding allocated to the CCDF was approximately $12.3 billion. This figure includes $8.75 billion from the CCDBG and $3.55 billion from the CCES.
It’s worth noting that the Head Start program — which offers early childhood education, nutritious meals, health screenings, and various support services to low-income families — remains unaffected by these changes.
In a recent social media announcement, Health and Human Services Deputy Secretary Jim O’Neill indicated that he had initiated the “defend the spend” system for all ACF payments. O’Neill mentioned that starting immediately, all ACF payments nationwide would require a justification, along with either a receipt or photographic proof, before any funds are dispatched to a state.
He also provided clarification in a follow-up post that stated, “Funds will only be released once states can verify that spending is legitimate.”
Regular Audits on Funds
“Federal funding plays a crucial role in allowing millions of parents across every state and Congressional district to access affordable and quality child care,” remarked Sarah Rittling, executive director of First Five Years Fund, a federal advocacy organization, in a statement on Wednesday.
Rittling emphasized that “these funds are vital for the well-being of the nation, enabling parents to work while ensuring their children receive safe and attentive care.”
She also characterized the reports of possible fraud as “extremely troubling” and underlined that “state oversight through routine audits is mandated by law to make sure that every dollar meant to protect and support young children is utilized effectively and appropriately.”
“Concurrently, we must ensure that nothing detracts from the vital flow of funding for child care to the children and families who rely on it,” she concluded.
