Judge Blocks Trump Adm From Freezing Child Care, Welfare to Dem States
A federal judge on Friday temporarily blocked President Donald J. Trump’s administration from freezing billions of dollars in federal funding for child care and social service programs in five Democrat-led states, ruling that the policy shift caused what he described as “immediate operational chaos.”
The decision, issued by U.S. District Judge Arun Subramanian—a Biden appointee—halts the administration’s funding freeze for at least 14 days as litigation continues. The ruling applies to California, Colorado, Illinois, Minnesota, and New York, which together receive more than $10 billion annually through the affected federal programs.
The lawsuit was filed earlier this week after the Department of Health and Human Services abruptly paused payments under three major federal welfare programs: the Child Care and Development Fund, Temporary Assistance for Needy Families (TANF), and the Social Services Block Grant. The suspension followed an HHS announcement stating it had “reason to believe” the states were distributing federal funds to illegal immigrants, though the department did not publicly release detailed evidence to support the claim.
In court filings, the Democrat-led states accused the Trump administration of weaponizing a fraud-prevention initiative to punish jurisdictions that have resisted federal immigration enforcement. They argued the freeze was already disrupting essential services relied upon by millions of low-income families.
“The government has not articulated a legal or factual basis for withholding this money,” said Jessica Ranucci, an attorney for the New York Attorney General’s Office, during a telephonic hearing Friday.
Ranucci told the court that child care providers were already experiencing delayed reimbursements in multiple states. “If the states can’t access these funds, there will be immediate uncertainty for providers and families who rely on these programs,” she said.
Judge Subramanian emphasized that his ruling did not address the legality of the administration’s policy but was intended to maintain existing conditions while the case moves forward. “The plaintiffs have met the standard for temporary relief to prevent irreparable harm,” he said, according to a court transcript.
Representing the federal government, attorney Kamika Shaw disputed claims that the funding had fully stopped, telling the court that her understanding was that “the money had not stopped flowing” to the states despite the freeze directive.
The Trump administration has defended the action as part of a broader anti-fraud effort led by Vice President J.D. Vance and HHS Secretary Robert F. Kennedy Jr., both of whom have highlighted billions of dollars in alleged taxpayer fraud uncovered in states such as Minnesota. HHS said the funding pause was designed to verify eligibility and ensure federal benefits were not going to “ineligible recipients, including undocumented individuals.”
Democratic officials, however, accused the administration of selectively targeting blue states that have clashed with President Trump over immigration enforcement and welfare oversight. New York Attorney General Letitia James, who is spearheading the lawsuit, praised the ruling as “a critical victory for families whose lives have been upended by this administration’s cruelty.”
The funding freeze impacted more than 1.3 million children who depend on federal child care subsidies, as well as millions of families receiving cash assistance and employment support through TANF.
While the court order restores funding to the five plaintiff states for now, the administration’s anti-fraud measures remain in place nationwide. According to HHS guidance, the remaining 45 states must now submit attendance verification and “strong justification for the use of funds” to continue receiving federal payments.
Separately, around the same time as Judge Subramanian’s ruling, Agriculture Secretary Brooke Rollins announced a $130 million funding freeze targeting Minnesota, citing unresolved concerns linked to the Feeding Our Future scandal—a massive pandemic-era fraud scheme in which more than 70 defendants have been charged and 57 convicted for stealing roughly $250 million intended to feed low-income children.
In a letter to Minnesota Gov. Tim Walz, Rollins said federal funding would remain suspended until the state provides full documentation “justifying expenditures of federal dollars.”