Trump Administration Halts Aid Funding for Colorado Families
Federal funding that supports child care and basic assistance for low-income families in Colorado has been put on hold as part of a broader action by the Trump administration targeting several Democratic-led states.
According to the Office of Management and Budget, roughly $10 billion in federal aid is being frozen across five states: Colorado, California, Illinois, Minnesota, and New York. The pause affects programs that help families pay for child care, access job training, and cover basic necessities during times of financial hardship.
The move comes amid rising political tensions between the White House and Democratic governors. President Donald Trump has recently threatened punitive measures against Colorado over the continued incarceration of former Mesa County Clerk Tina Peters, who is serving a nine-year sentence for election-related crimes. Last week, Trump also vetoed a federal drinking water project in eastern Colorado, further escalating the dispute.
At the center of the funding freeze are two major programs: the Child Care Development Fund and Temporary Assistance for Needy Families (TANF). An OMB official told Axios that the administration’s decision is tied to allegations of fraud and claims that federal dollars were being diverted to undocumented immigrants. While the official cited past fraud cases in several of the affected states, Colorado was not identified as one of them.
The financial impact on Colorado could be significant. The state currently receives about $135.6 million annually through TANF block grants, along with an additional $16 million in contingency funds, according to the Colorado Department of Human Services. In December alone, more than 14,000 Colorado families relied on TANF-funded services.
State officials say they have not yet received formal notification of the funding freeze. Still, concern is growing over what the pause could mean for vulnerable families and children.
“If true, it would be awful to see the federal government targeting the most needy families and children this way,” said Shelby Wieman, a spokesperson for Gov. Jared Polis.
The Colorado Department of Human Services said it remains committed to supporting families and will continue advocating for programs that help Coloradans achieve long-term stability, even as uncertainty looms over federal funding.
