A Trump administration move to pause federal funding for key safety net programs has put Colorado officials on the defensive and Boulder County families in the crosshairs.
The Child Care Assistance Program, known as CCAP, has already been stretched thin due to federal policy changes under the Biden administration. Now, new funding threats from the Trump administration are intensifying anxiety across the childcare system.
CCAP has been unable to accept most new families since 2023. The waitlist grew after federal changes required higher reimbursement rates for childcare providers without a corresponding increase in overall funding. While the change helped raise pay for childcare workers, it also meant the same pool of money could serve fewer families.
Now, Boulder County officials say the Trump administration’s recent move to pause funding for several safety net programs until a federal review is conducted has underscored how much both families and providers rely on that support to stay afloat.
A New York judge temporarily unblocked the funding, and another judge extended that order through Feb. 6, as a legal challenge brought by five states, including Colorado, proceeds. Local leaders warn the funding threats are based on unfounded claims and driven by political motives.
A program under strain
CCAP pays childcare providers directly to cover all or part of tuition for eligible families. In Boulder County, access to the program has narrowed sharply in recent years.
According to state data, 1,912 children in Boulder County received CCAP assistance in 2015. By 2026, that number had dropped to about 1,250, even as the cost of childcare has continued to rise.
Infant care has been particularly affected. Families already enrolled in CCAP can remain eligible until a child turns 13, limiting turnover and reducing openings for families with very young children.
Statewide, about 20% of CCAP families also receive Temporary Assistance for Needy Families, or TANF, another program swept up in the Trump administration’s funding pause.
Federal allegations, local pushback
On Jan. 6, the Trump administration sent letters to five states — New York, California, Illinois, Minnesota and Colorado — announcing a pause in funding to three major safety net programs until additional conditions were met.
In a letter to Gov. Jared Polis, federal officials alleged that Colorado was improperly providing benefits to noncitizens, writing that “enhancements of fiscal accountability requirements” were necessary to mitigate fraud.
Boulder County officials strongly dispute those claims.
“If people are defrauding the program, it means others that really need the benefit aren’t getting it. And so we all take that seriously,” Boulder County Commissioner Ashley Stolzmann said. She added that fraud prevention is not a partisan issue.
Stolzmann said federal rules require that only the child receiving care meet citizenship requirements. Caregivers are vetted for income, expenses and residency, but caregiver citizenship is not required under federal CCAP guidelines.
Susan Caskey, director of Boulder County Housing and Human Services, said staff who process CCAP applications undergo a year of training, and all of their cases are audited until they demonstrate accuracy.
When potential fraud is flagged, she said, cases are reviewed using federal systems and referred for prosecution if confirmed.
Clerical errors, like transposed numbers that are clearly accidental, are handled separately and returned for correction.
On Thursday, state lawmakers sent a letter to the Trump administration urging them to release the $300 million in frozen funds, saying Colorado has fiscal accountability systems and internal controls in place to prevent fraud and is willing to work with federal officials on any necessary improvements.
Why providers are worried
Childcare providers say disruptions to CCAP funding can ripple quickly through the system.
Kaycee Headrick, CEO of the nonprofit Early Childhood Council of Boulder County, said CCAP is a lifeline for both families and providers in a high-cost region.
According to the council, the average annual cost of full-time childcare for a child under 5 in Boulder County is $21,348, about $10,000 less than a full-time salary at the federal poverty level.
If a family loses CCAP funding and withdraws from care, providers must fill that slot quickly to remain financially viable, Headrick said. Families may struggle to re-enter the system later, even if funding resumes.
An analysis by the council found that licensed childcare in Boulder County meets estimated demand for only 26% of infants and 53% of toddlers in households with two working parents.
A case study in the stakes
At Wild Plum, a Head Start and Early Head Start provider in Longmont, funding accounts for a significant share of operations.
The program currently serves 34 CCAP children, bringing in about $40,000 a month, according to program director Elizabeth Lenski. Financial records show Wild Plum received over $950,000 in CCAP funds during the 2023-24 school year, accounting for 17% of its total revenue, second only to Head Start grants.
According to the program’s most recent annual report, half of infants and toddlers served by Wild Plum experienced homelessness, as did one-third of preschoolers.
Programs like Wild Plum, and the funding that allow them to operate, are a benefit to the community, allowing low-income parents to better care for their families.
But according to Stolzmann, safety net programs like CCAP and TANF are not just beneficial to the families that need them.
This isn’t just about individual families, Stolzmann said. “This is critical infrastructure for the community to be able to function.”
What’s next
For now, families already enrolled in CCAP will continue to receive assistance, county officials said. What happens next will depend on the outcome of the pending court case and any further federal action.
Boulder County Housing and Human Services said it will continue to update the community through its website as the situation evolves.
Those are shocking statistics that in one Head Start/Early Head Start program in Longmont (Wild Plum), half of the infants and toddlers, and 1/3 of the preschoolers experienced homelessness. Where are those families staying, at a shelter? Other than CCAP funding, are foundations stepping up to help these families young children stay in school? This could almost be like a detention center situation if young children were forced to stay in a shelter all day with their parent(s), and the parents would also not be able to pursue job training or search for employment.