On Wednesday, ABC’s Good Morning America fretted over the Trump administration’s decision to freeze $10 billion in federal child care funds to five blue states — including Tim Walz’s Minnesota — and inflict pain on “those who need the help the most” because “a conservative YouTuber” peddled “unverified allegations of fraud at day cares.”
Co-host and former Clinton official George Stephanopoulos seethed in a tease, whining the funds are “aimed to help hundreds of thousands of families pay for childcare” and affect “[f]ive states with Democratic governors targeted, no states with Republican governors.”
“Now, who will get hit the hardest as child care costs are rising for Americans families,” he warned.
ABC’s ‘Good Morning America’ reported Wednesday the Trump administration froze $10 billion in child care funds for Minnesota and four other blue states, blaming it on “a conservative YouTuber’s viral video spread[ing] unverified allegations of fraud at daycares” pic.twitter.com/kqHX2Uy4Oi
— Curtis Houck (@CurtisHouck) January 7, 2026
Correspondent Elizabeth Schulze had the story and started by making it seem as though this came out of nowhere:
This is $10 billion in federal funding that was approved by Congress to help hundreds of thousands of families pay for childcare. The Department of Health and Human Services has now frozen access to those funds in five states with Democratic governors: California, Colorado, Minnesota, Illinois, and New York.
Schulze implied Republican states are the real problem: “Funds are still flowing to all other states, including Republican-led Mississippi, where jury selection kicked off this week in a major scandal where federal funds for social services were allegedly misused.”
After reading a portion of a statement from the Department of Health and Human Services that Americans “deserve confidence that these resources are used lawfully and for their intended purpose,” Schulze declared there has not been “any evidence of widespread fraud at this point.”
Without naming him, Schulze then blamed Nick Shirley: “Last week, the administration pulled funds for childcare centers in Minnesota after a conservative YouTuber’s viral video spread unverified allegations of fraud at day cares[.]”
She concluded by invoking the soaring costs of paying for child care: “[A]nd this comes as the cost of daycare and preschool nationwide for families is up 4.7 percent in the past year. That is almost double overall inflation and, like other recent cuts that we’ve seen to federal programs, this move will hit low-income families the hardest.”
Co-host Robin Roberts opined as well, fretting this will affect “[t]hose who need the help the most.”
But, as our friend and Bulldog Award winner Drew Holden has pointed out, Minneapolis day care centers have, in fact, been under investigation and even local media found some under fire did not have any children inside.
To see the relevant ABC transcript from January 7, click “expand.”
ABC’s Good Morning America
January 7, 2026
7:01 a.m. Eastern [TEASE][ON-SCREEN HEADLINE: New This Morning; Child Care Funds Frozen]
GEORGE STEPHANOPOULOS: The Trump administration freezes $10 million in federal funds aimed to help hundreds of thousands of families pay for childcare. Five states with Democratic governors targeted, no states with Republican governors. Now, who will get hit the hardest as child care costs are rising for Americans families?
(....)
7:12 a.m. Eastern
[ON-SCREEN HEADLINE: Trump Administration Freezes $10B in Federal Child Care Funding]
STEPHANOPOULOS: Turning now to the Trump administration’s decision to freeze $10 billion in federal childcare funds to five states run by Democrats. Elizabeth Schultz is in Washington with the latest on that. Good morning, Elizabeth.
ELIZABETH SCHULZE: Good morning, George. This is $10 billion in federal funding that was approved by Congress to help hundreds of thousands of families pay for childcare. The Department of Health and Human Services has now frozen access to those funds in five states with Democratic governors: California, Colorado, Minnesota, Illinois, and New York. Funds are still flowing to all other states, including Republican-led Mississippi, where jury selection kicked off this week in a major scandal where federal funds for social services were allegedly misused. Now, the Trump administration is saying that families “deserve confidence that these resources are used lawfully and for their intended purpose,” adding that those five Democratic states won’t be able to access the money until a review looking to what it calls widespread fraud is complete, but officials are not providing any evidence of widespread fraud at this point. Last week, the administration pulled funds for childcare centers in Minnesota after a conservative YouTuber’s viral video spread unverified allegations of fraud at day cares, and this comes as the cost of daycare and preschool nationwide for families is up 4.7 percent in the past year. That is almost double overall inflation and, like other recent cuts that we’ve seen to federal programs, this move will hit low-income families the hardest, Robin.
ROBIN ROBERTS: Those who need the help the most. All right, Elizabeth, thank you.
