Federal Judge Temporarily Blocks Trump Administration From Freezing $10 Billion in Child Care Funding
A federal judge on January 9 temporarily blocked the Trump administration from freezing approximately $10 billion in federal funding for child care and family assistance programs in five states.
U.S. District Judge Arun Subramanian of the Southern District of New York issued a temporary restraining order preventing the Department of Health and Human Services from halting the funds while litigation continues. The order applies to California, Colorado, Illinois, Minnesota, and New York and will remain in effect for 14 days unless extended by the court.
The funding at issue supports three federal programs: the Child Care and Development Fund, Temporary Assistance for Needy Families, and the Social Services Block Grant. The programs provide child care and family support services, primarily for lower-income households.
Lawsuit Filed by States
Attorneys general from the five states filed a lawsuit on January 8 seeking the release of the funds. The complaint argues that the administration lacked authority to suspend payments that had already been approved by Congress and that required procedures were not followed before the freeze was announced.
The case was filed in Manhattan federal court.
Administration Position
The Department of Health and Human Services announced the funding pause on January 6, stating that it was responding to concerns about fraud and misuse of federal funds within state-run programs. The department also said it was reviewing allegations that individuals not eligible for benefits may have accessed the funds.
In a statement posted on X on January 8, HHS General Counsel Mike Stuart said the department was acting to protect taxpayer dollars and stood by its decision to conduct an immediate review.
Alex J. Adams, HHS assistant secretary for children and families, said the agency has a responsibility to ensure federal programs operate as intended and to take action when concerns arise.
State Responses
The attorneys general said they had not received detailed explanations of the allegations cited by the administration. Minnesota Attorney General Keith Ellison said the states were notified of the funding freeze without being provided supporting findings.
California Attorney General Rob Bonta said roughly half of the $10 billion in funding was designated for California. Attorneys general from the other states said the programs affected serve large numbers of residents.
Court Order and Next Steps
Judge Subramanian’s order requires the funds to continue flowing while the court reviews further legal arguments from both sides. The judge wrote that the temporary measure was intended to maintain existing funding arrangements during the early stage of the case.
The restraining order is scheduled to expire in 14 days, pending additional court action. The case remains under review.
