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The Colorado Department of Early Childhood (CDEC) is sharing an update regarding recent federal actions affecting Child Care and Development Fund (CCDF), Temporary Assistance to Needy Families (TANF), and Social Services Block Grant (SSBG) funding.
On January 9, 2026, the United States District Court for the Southern District of New York granted a Temporary Restraining Order (TRO) that pauses implementation of a January 6, 2026 letter issued by the Administration for Children and Families (ACF) for a period of fourteen (14) days. This order temporarily prevents additional restrictions directly associated with that letter while the court considers next steps. This is a positive development for the Department and the children, families, and providers we serve, and CDEC will continue working with our federal partners in conducting our usual course of business.
Separately, ACF has implemented nationwide changes to the federal Payment Management System (PMS) that require additional justification and payment documentation when states request reimbursement for program expenses. These payment system changes apply to all states and are distinct from the January 6, 2026 letter and the TRO. CDEC did receive a disbursement through our usual course of business today, January 12, 2026.
The Department is actively working through these federal requirements and closely monitoring how both developments may affect funding processes. At this time, the court order and the payment system changes are operating independently.
The Colorado Department of Early Childhood will continue to share updates as more information becomes available – as our priority remains supporting Colorado’s children, families, and the early childhood workforce.
Best,
The CDEC Team
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