Source: United States House of Representatives – Representative Judy Chu (CA2-27)
WASHINGTON, D.C. – Today, Rep. Judy Chu (CA-28) led every Democrat on the Ways & Means Committee in introducing a Resolution of Inquiry (ROI) that would demand transparency into the Trump administration’s new “Defend the Spend” policy for childcare payments to states.
Under the “Defend the Spend” policy, states cannot draw down their Child Care Entitlement to States (CCES) allocation until they provide unspecified data not required by law to the Department of Health and Human Services (HHS). The CCES program provides mandatory funding to states, territories, and tribes to subsidize childcare expenses for low-income working families and to improve the supply and quality of childcare. But ever since the Trump administration reinstated their “Defend the Spend” policy in December 2025 after claiming unsubstantiated allegations of fraud in the CCES program, there have been anecdotal reports of states and counties unable to draw down funding. This violates federal law, which requires HHS to provide due process before suspending childcare funding due to allegations of misuse. Additionally, HHS thus far has failed to provide answers to Congress regarding which states are or are not able to access their funding, who at HHS is reviewing states’ submissions, or how that data is being used.
“The “defend the spend” policy for childcare funding is a direct attack on working families,” said Rep. Chu. “Low-income parents rely on this funding to afford care for their kids so they can go to work, and childcare centers across the country depend on it to keep their doors open. It is disgusting that the Trump administration is putting this lifeline at risk by making states jump through new hoops before they can receive the funding they are owed under the law.”
Rep. Chu continued: “It is also deeply troubling that the Administration won’t tell us which states have received funding or who at HHS is responsible for reviewing and making decisions about the data states submit. Especially given the Administration’s recent nakedly political attempt to outright block childcare funding to five blue states, this raises serious concern that “defend the spend” could similarly be used to selectively target and punish Democratic states. We must demand transparency, and that’s exactly what my resolution would do.”
The Resolution of Inquiry would require President Trump and HHS Secretary Robert F. Kennedy Jr. to provide all documents, records, audio recordings, memorandums, correspondence, contracts, and more to the House of Representatives relating to the following:
- The HHS Deputy Secretary’s December 30, 2025 tweet reinstituting “defend the spend” procedures.
- Drawdown of CCES allocations via the Payment Management System (PMS) by any State, Territory, or Tribal grantee any time after December 30, 2025.
- Payment management system delays and procedure for addressing funding delays and complaints.
- Trump administration social media posts alleging childcare fraud and resulting threats to, and harassment of, individual childcare providers.
- Warning letters, referrals to the Office of the Inspector General, or other disciplinary actions regarding alleged funding misuse by any CCES grantee.
- Communication with grantees regarding the submission of additional data in order to draw down CCES funds and the storage, use, and sharing of such data within and outside of HHS.
- Payments to contractors or consultants related to ‘‘Defend the Spend’’ requirements, procedures, or implementation.
- Legal opinions designating as “proprietary” information related to contracting, spending of legally authorized funding, referrals to the Office of the Inspector General, staffing assignments, or procedures related to CCES funding.
- Contracts, staffing assignments, and instructions to contractors and any HHS staff regarding the ‘‘Defend the Spend’’ criteria and process for CCES entitlements.
- Contracts with States, Tribes, and Territories governing any payment management system operative in 2025 and 2026 and used to provide grantee access to CCES funding.
- Meetings, discussions, or other actions involving the HHS Office of the General Counsel or outside legal advisors regarding the use of a payment management system by grantees or efforts to provide, delay, or prevent access to funding.
The full text of the Resolution of Inquiry is available HERE.