Maine will have to go through a new process to access federal child care grants but is not among the states that have had that funding frozen by the Trump administration, state officials said.
After allegations of fraud at Minnesota day care centers, federal officials last week announced a nationwide freeze on roughly $12.3 billion in payments for the Child Care and Development Fund, which sends money to states to help low-income families.
That nationwide freeze has not happened, but the U.S. Department of Health and Human Services on Tuesday froze access to funds for California, Colorado, Illinois, Minnesota and New York following “serious concerns about widespread fraud and misuse of taxpayer dollars in state-administered programs,” the department said.
“Families who rely on child care and family assistance programs deserve confidence that these resources are used lawfully and for their intended purpose,” Deputy Secretary Jim O’Neill said in a statement. “This action reflects our commitment to program integrity, fiscal responsibility and compliance with federal requirements.”
The Maine Department of Health and Human Services confirmed Friday that Maine is not subject to the freeze, but spokesperson Lindsay Hammes said a new process is being implemented nationwide for accessing federal child care funds.
Maine officials were notified this week that grantees must now use the “Defend the Spend” process to draw down federal funds, Hammes said.
Defend the Spend requires states requesting funds to attest that they are implementing strategies and controls to identify fraud and ensure program integrity, including verification of child enrollment and attendance submissions, according to the Administration for Children and Families.
States must also include a “strong justification” for the use of the grant money that aligns with the purpose of the Child Care and Development Fund, according to the administration.
Maine’s share of the funds totals just over $34.4 million. The money goes to Maine’s Child Care Affordability Program, which also includes several other funding streams, according to the Maine Department of Health and Human Services.
In Maine, 868 providers are approved to serve families in the state’s child care affordability program and receive biweekly payments from DHHS.
Also this week, the Trump administration said it will rescind a series of Biden-era rules governing the federal program that encouraged states to base payments to providers on enrollment, pay them in advance for child care and favor guaranteed spots over vouchers.
The rules “created serious vulnerabilities and weakened accountability,” O’Neill said on Monday. The proposed changes, he said, would ensure that “payments reflect real services and real attendance, making it harder for fraudulent or non-operational centers to game the system.”
Alex Adams, assistant secretary for the Administration for Children and Families, said states would “no longer be forced to send payments to providers up front.” The proposed changes would also end enrollment-based payments in favor of payments based on verified attendance “so that providers can’t bill for children that never show up,” he said in an announcement shared on social media.
The proposed rules will undergo a 30-day comment period.
Heather Marden of the Maine Association for the Education of Young Children said child care providers have already worked under similar rules to the ones proposed and keep records verifying attendance for three years. She said the state will provide that information to the federal government. Marden hopes payments to providers will not delayed.
“No one wants to hear about fraud happening, but I have confidence that in Maine we’re doing right by families and programs,” she said.
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