State Rep. Regan Deering, R-Decatur, said the Trump administration’s move to freeze billions in federal child care and social services funding underscores long-standing problems with fiscal oversight in Illinois and highlights budget priorities she says have left the state vulnerable.
The Trump administration is freezing more than $10 billion in federal child care and social services funding nationwide, including substantial allocations for Illinois, amid concerns that benefits were fraudulently diverted to non-citizens, according to the New York Post. Affected programs include Temporary Assistance for Needy Families, the Child Care Development Fund, and the Social Services Block Grant.
“Illinois has had ample opportunities in each budget cycle to better fund social services but instead has prioritized benefits for illegal aliens and pay raises for politicians,” Deering told the Macon Reporter. “Lawmakers should have been more mindful of spending so that Illinois would be better equipped to handle situations like these. House Republicans have raised concerns year after year, yet no meaningful changes have been made by the Democrat supermajority.”
Federal officials have formally requested detailed records from Illinois dating back to 2019 as part of an investigation into the alleged misuse of social services funding. While governors in other Democratic-led states publicly condemned the freeze as political retaliation, Illinois officials had not issued a public response at the time, according to the New York Post.
U.S. Judge Arun Subramanian of the Southern District of New York temporarily blocked the administration’s freeze on federal child care and family assistance funds for low-income families in Illinois on Jan. 9, according to USA Today. Illinois, California, Colorado, Minnesota, and New York had filed suit against the U.S. Department of Health and Human Services after the funding was cut off.
On Feb. 6, a federal judge halted the Trump administration’s $10 billion funding freeze on child care and family planning programs targeting five Democratic-led states, including Illinois, according to ABC7 Chicago. Judge Vernon S. Broderick of the Southern District of New York issued a preliminary injunction directing the administration to reinstate access to the funds. The administration alleged fraud but presented no evidence. The injunction remains in effect pending a final ruling on the freeze’s legality.
Deering said the situation underscores broader affordability and accountability problems in Illinois government, arguing that high taxes and weak oversight continue to burden residents.
“We need greater affordability and accountability this year—two areas in which our state consistently falls short,” Deering said. “Without accountability, Illinois continues to rank among the most unaffordable states to live in, driven largely by its high tax burden. We must focus on genuine ethics reform, cutting wasteful spending, and strengthening oversight of state agencies.”
The funding freeze comes amid reports that Minnesota’s social services system was exploited through what federal prosecutors have described as “industrial-scale fraud.” According to the New York Post, investigators allege fake nonprofits and businesses billed the state for services that were never provided, with potential losses reaching as much as $9 billion since 2018—one of the largest public-benefit fraud schemes in U.S. history.
Suspects allegedly created wholly fabricated child care operations, falsifying client records, enlisting relatives to submit fraudulent claims, and in some cases crossing state lines to do so. The scheme has resulted in 92 defendants and numerous convictions, with millions allegedly moved overseas or spent on luxury goods.
As additional details emerged, including a viral video from independent journalist Nick Shirley showing nearly empty, state-subsidized child care centers receiving millions in funding, Minnesota Gov. Tim Walz abruptly suspended his re-election campaign. Republicans pointed to the development as evidence of accountability failures under his administration, according to Minnesota State Wire.
President Donald Trump weighed in on the Minnesota investigation, saying the case had revealed widespread mismanagement across multiple states.
“Governor Walz has destroyed the State of Minnesota, but others, like Governor Gavin Newscum, JB Pritzker, and Kathy Hochul, have done, in my opinion, an even more dishonest and incompetent job,” Trump wrote on Truth Social. “NO ONE IS ABOVE THE LAW!”
Just over a year earlier, Gov. JB Pritzker publicly praised Walz after Vice President Kamala Harris selected him as her running mate, calling him a “proven leader who brings to public service the big heart and hard work of a Midwesterner.” Pritzker also noted the two communicated frequently, according to ABC7 Chicago.
Deering said Illinois has faced similar oversight challenges under Pritzker’s administration, pointing to repeated failures across multiple state agencies.
“It is no secret that state agencies have struggled under Governor Pritzker’s administration,” she said. “Agencies such as the Illinois Department of Children and Family Services, the Illinois Department of Employment Security, and the Illinois Department of Human Services have faced intense scrutiny for their inability to effectively carry out their responsibilities.”
She said stronger oversight could have prevented many of those issues or reduced their impact.
“With stronger oversight, many of these problems could be prevented—or at least resolved more efficiently and effectively,” Deering said.
In May 2025, Illinois House Republicans, including State Rep. Brad Halbrook, R-Shelbyville, alleged that more than $1 billion in taxpayer funds was being routed to politically connected nonprofits. Halbrook said $14 million allocated to the Indo-American Center was “just a drop in the bucket,” according to The Center Square.
Republicans proposed a pared-down $44 billion state budget, which was later rejected by Pritzker-aligned lawmakers in the General Assembly.
According to the Macon Reporter, Illinois House Republicans cited findings from the Illinois DOGE series showing that more than $1 billion in taxpayer funds flowed to nonprofits with limited oversight. Major recipients included the Indo-American Center ($25 million), ONE Northside ($1.25 million), the Illinois Hispanic Chamber of Commerce ($11.4 million since 2020, including $4 million in FY25), Centro de Trabajadores Unidos ($7 million), the Black Researchers Collective ($700,000 annually), the Chicago Therapy Collective ($1.5 million in FY24), and TMH Mancave ($750,000). The report also found that more than $73 million went to local chambers and economic development nonprofits, while racial, ethnic, and religious NGOs received a combined $237 million.
Deering said taxpayers expect responsible stewardship of public funds and that growing calls for transparency reflect a public that is increasingly engaged and unwilling to remain silent.
“Taxpayers have long expected their government to manage their hard-earned tax dollars appropriately, and demanding increased transparency is a sign that citizens are paying attention and no longer staying silent,” she said.
Deering was sworn into the Illinois House in January 2025 and represents the 88th District in central Illinois. A former educator and small business owner, she lives in Decatur with her husband and three children.
