EL PASO, TEXAS (KFOX14/CBS4) — Daycares across the United States are facing potential operational challenges following a nationwide freeze on federal funding.
The U.S. Department of Health and Human Services initiated the freeze after allegations of fraud in Minnesota, where a YouTube influencer claimed that millions in child care funds were misused.
The freeze, initially limited to Minnesota, has now been expanded nationwide.
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Bianca Ortiz, director of Jack and Jill Daycare in Central El Paso, expressed concern over the Trump administration’s decision to pause childcare funding nationwide due to investigations in Minnesota.
Ortiz said the funding freeze is significantly impacting her daycare, which serves many low-income families in the central area.
Bianca Ortiz, Director of Jack and Jill Daycare during interview with Julia Spencer.{ }(Credit: KFOX14/CBS4)
“If we are giving funding to those families and we don’t receive the money, we’re not going to have the funds to go ahead and provide the same services that we usually provide for the parents,” she said.
Ortiz’s daycare is licensed to serve 67 children.
She explained that about 70-80% of her families rely on federal funding to afford childcare.
“I have some parents who pay zero weekly, which CCS covers that fee at 100%,” Ortiz said, referring to the Child Care Services program.
Jack and Jill Daycare. (Credit: KFOX14/CBS4)
“Then I have some parents that pay anywhere from five to $50 to $100 a week, just depending on the amount of kids that they have and the income that they make.”
Jim O’Neill, Health and Human Services Deputy Secretary, announced the activation of the “Defend the Spend” system, requiring justification receipts or photo evidence before payments are made.
Alex Adams, Assistant Secretary for the Administration for Children and Families, emphasized the need for states to maintain high standards of oversight and accountability for federal funds.
Ortiz received an email warning of potential delays in payments from the Texas Workforce Commission due to the freeze.
Ortiz emphasized the importance of maintaining quality care despite financial challenges.
“One of the things that I can tell you the way that we run our daycare is always quality over quantity,” she said. However, she acknowledged that without funding, it might be difficult to provide essentials like food, utilities, and new toys.
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Ortiz criticized the funding freeze as unfair, stating, “It’s very unfair that us that put so much hard work and effort into doing this, we’re getting affected by it because of mistakes that other people made.”
She compared the situation to the COVID-19 pandemic, noting that during COVID, grants were available to help daycares stay open, whereas now, accounts are frozen and parents must pay out of pocket.
El Paso Congresswoman Veronica Escobar criticized the freeze, stating,
Donald Trump must reverse his decision to cut childcare funding for millions of American families. His harmful freeze comes as 100,000 El Paso families are seeing increases in their health insurance costs because of Republican inaction, as well as the loss of Medicaid and nutrition program funding because of what Republicans call their “One Big Beautiful Bill.” Americans are also grappling with the crushing financial burdens of Trump’s terrible economy.This is not about fighting fraud. If that were the case, Donald Trump wouldn’t keep pardoning criminals who defrauded the federal government, like Trevor Martin a former CEO whose commutation means his victims won’t receive $680 million that they’re owed in restitution.It should be clear to every single American that Donald Trump doesn’t care about us. He only cares about the wealthy, the well connected, and the people who participate in his pay to play schemes. This shameful choice to freeze childcare funding needs to be reversed immediately.
Despite the challenges, Ortiz remains committed to supporting her community. “I’m going to try my best to keep providing the quality of care that we have,” she said. “Whatever we can continue to help you guys with, we’re going to go ahead and help you guys with that.”
Parents, providers, and community members are encouraged to contact the U.S. Department of Health and Human Services with questions about daycare funding.
The hotline number is 1-800-HHS-TIPS (1-800-447-8477) or you can email complaints or questions at ChildCare.gov@acf.hhs.gov
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