David Sheppard, a Republican candidate for the Illinois House of Representatives in District 36, said the Trump administration’s freeze on federal child care and social services funding highlights long-standing accountability failures in Illinois and reinforces the need for stricter oversight before taxpayer dollars are distributed.
The Trump administration has frozen more than $10 billion in federal child care and social services funding nationwide, including substantial allocations for Illinois, amid concerns that some benefits were fraudulently claimed by 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.
“I believe at this point it’s an unavoidable necessity,” Sheppard told the South Cook News. “Each dollar that is removed due to fraud is one less dollar that could have been used to feed a child or clothe a family.”
Federal officials have requested detailed records from Illinois dating back to 2019 as part of an investigation into potential misuse of social services funds. While governors in other Democratic-led states publicly condemned the freeze as political retaliation, Illinois officials had not issued a formal response at the time, according to the New York Post.
On Jan. 9, U.S. Judge Arun Subramanian of the Southern District of New York granted a temporary restraining order halting the administration’s suspension of federal child care and family assistance funds that support low-income families in Illinois, according to USA Today. Illinois, California, Colorado, Minnesota, and New York had taken legal action against the U.S. Department of Health and Human Services following the funding cutoff.
A federal judge on Feb. 6 overturned the Trump administration’s $10 billion freeze on child care and family planning funds directed at five Democratic-led states, including Illinois, according to ABC7 Chicago. Judge Vernon S. Broderick of the Southern District of New York ordered the administration, through a preliminary injunction, to restore access to the frozen funds. Despite raising fraud allegations, the administration supplied no evidence to back the claims. The injunction will remain until a final legal determination on the freeze is made.
Sheppard said stronger oversight in Illinois is overdue.
“(Stricter oversight in Illinois) is already long overdue,” he said.
The freeze comes amid reports that Minnesota’s social-services system was exploited in what federal prosecutors have described as “industrial-scale fraud,” involving sham nonprofits and businesses billing the state for services that were never provided. Investigators estimate losses could reach as much as $9 billion since 2018, making it one of the largest public-benefit fraud schemes in U.S. history, according to the New York Post.
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.
New details, including a viral video from independent journalist Nick Shirley showing nearly empty, state-subsidized childcare centers still collecting millions in taxpayer funds, prompted Minnesota Gov. Tim Walz to abruptly suspend his re-election campaign. Republicans cited the move as evidence of systemic oversight failures under Walz’s leadership, according to Minnesota State Wire.
President Donald Trump weighed in on the Minnesota scandal, saying it exposed 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 said on Truth Social. “NO ONE IS ABOVE THE LAW!”
Sheppard said he disagrees with the policy approaches of Illinois Gov. JB Pritzker and Walz.
“To be honest, I have never taken the time to consider my personal feelings on their personal relationship,” he said. “However, I do not agree with a majority of their policies.”
Just over a year ago, 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,” according to ABC7 Chicago.
Sheppard outlined a proposal requiring additional accountability before state funds are distributed.
“I propose for a 30 day accountability report to be issued BEFORE funds are transferred for any payout request,” Sheppard said. “The request for funds, and accountability report would be forwarded to an oversight panel which could not disperse funds until the 30 day wait period expired and then a second physical signature would be required from the department head.”
According to the Macon Reporter, Illinois House Republicans cited reporting from the Illinois DOGE that over $1 billion in taxpayer funds flowed to nonprofits with minimal oversight. Major recipients included the Indo-American Center ($25M), ONE Northside ($1.25M), the Illinois Hispanic Chamber of Commerce ($11.4M since 2020, including $4M in FY25), Centro de Trabajadores Unidos ($7M total), Black Researchers Collective ($700K annually), Chicago Therapy Collective ($1.5M in FY24), and TMH Mancave ($750K). In addition, more than $73M went to local chambers and economic development nonprofits, while racial, ethnic, and religious NGOs collectively received $237M, often with limited transparency.
In May 2025, Illinois House Republicans, including State Rep. Brad Halbrook (R-Shelbyville), raised concerns that more than $1 billion in taxpayer dollars was being directed to politically connected nonprofits with little oversight, calling the funding levels a symptom of deeper accountability problems.
Lawmakers also proposed a leaner $44 billion state budget, which was rejected by allies of Gov. Pritzker, according to The Center Square.
In addition to accountability measures, Sheppard said he would pursue property tax relief if elected.
“I am proposing PROP #119 to be made law here in Illinois once I am elected to office to decrease Homeowners Property Taxed by 60%,” Sheppard said.
He described the proposal as a “tax flip” that would shift school funding responsibilities from local property taxpayers to the state.
“Illinois homeowners are being crushed by property taxes because Springfield has pushed the cost of funding schools onto families instead of managing it at the state level,” Sheppard said. “A responsible ‘tax flip’ would protect our schools, support teachers, and lower property taxes without cutting classroom funding.”
Sheppard, a Republican, is challenging first-term incumbent State Rep. Rick Ryan (D-Evergreen Park) for the Illinois House of Representatives in District 36.
Illinois House District 36, located in Cook County within the Chicago metropolitan area, includes parts of Chicago, Palos Heights, and Palos Hills, along with surrounding townships and villages such as Evergreen Park, Oak Lawn, Palos Park, and Worth.
