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January 2, 2026
We're sure many of you are tracking the news on the Child Care Assistance Program (CCAP) and the federal government’s actions to freeze Minnesota’s child care payments. For now, counties, Tribal Nations, CCAP providers and families should continue with all CCAP, licensing and certification requirements and practices as usual. State funding for Great Start Compensation Support Payment Program and Early Learning Scholarships is not impacted by the federal funding freeze.
We recognize the alarm and questions this has raised. We found out about the freezing of funds at the same time everyone else did on social media. We did not receive a formal communication from the federal government until late Tuesday night.
The letter from the U.S. Department of Health and Human Services’ (HHS) Administration for Children and Families (ACF) requires the State of Minnesota to provide the following information from 2022-2025:
- Total amount of Child Care and Development Fund (CCDF) or Temporary Assistance for Needy Families (TANF) child care funds received by five specific child care centers
- For any of the specifically named centers that did receive CCDF or TANF funds, the state must provide specific documentation around areas like attendance, inspections, assessments, etc.
- Complete CCDF Administrative Data for all recipients including name, address, social security number, date of birth and any state issued identification numbers used for program administration
- Information related to alleged fraud networks and oversight failures
- Comprehensive list of all CCDF Funded providers and intermediaries, including total CCDF funding received
ACF has stated a deadline of Jan. 9, 2026 to provide this information. ACF says it may withhold CCDF and impose other penalties if satisfactory responses are not provided. The letter also states that there will be a temporary restriction for Minnesota to draw down CCDF federal reimbursement, and that additional information will be provided to the state on Jan. 5, 2026. We do not yet have ACF guidance about what type of restrictions may be in place.
Our teams are working hard to analyze the legal, fiscal, and other aspects of this federal action. We do not know the full impact of this is yet, but we are committed to update you as early and often as possible.
We do know that CCAP is a vital resource in Minnesota that underpins our state economy and workforce. DCYF has been and continues to be committed to investigating allegations and we have no tolerance for fraud.
Safety Concerns
We are aware that some licensed child care centers have received harassing or threatening communications following recent media coverage. Threats or intimidation should be taken seriously. If your program receives any threatening, harassing, or intimidating calls or messages, please contact your local law enforcement agency promptly. DCYF does not have authority to investigate criminal threats; local law enforcement is best positioned to respond.
When DCYF representatives conduct onsite licensing or program oversight visits, they will identify themselves by name and agency, state the purpose of the visit, and present official agency identification. DCYF’s statutory access authority applies only to DCYF licensing and program-related activities and should not be interpreted as guidance regarding interactions with other law enforcement agencies.
Please know that your work is incredibly appreciated and vital to Minnesota. We will work through this uncertainty together.
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