A federal judge issued a temporary ruling on Friday, preventing the administration of President Donald Trump from blocking billions in federal funds for child care and family support programs from flowing to five states led by Democratic governments.
Immediate Relief for States Facing "Operational Chaos"
The states of California, Colorado, Illinois, Minnesota, and New York successfully argued that a sudden policy announced on Tuesday, January 6, 2026, to freeze grants was causing severe disruption. They contended the freeze created "operational chaos" and was having an immediate negative impact on vulnerable families.
In court filings and a telephonic hearing, state lawyers asserted the federal government provided no legal justification for withholding the money. The U.S. Department of Health and Human Services claimed it paused funding because it had "reason to believe" these states were providing benefits to people residing in the country illegally. However, the department offered no evidence to support this claim and did not explain why it targeted these specific states.
Critical Programs and Billions at Stake
The frozen funding affects three vital grant programs:
- The Child Care and Development Fund: Subsidizes child care for children from low-income families.
- The Temporary Assistance for Needy Families (TANF): Provides cash assistance and job training.
- The Social Services Block Grant: A smaller, flexible fund supporting a variety of social programs.
Collectively, the five states receive more than $10 billion annually from these programs, money essential for supporting needy children and families.
Jessica Ranucci, a lawyer for the New York Attorney General's office, stated during the hearing that at least four states had already experienced payment delays. She warned that without access to child care funds, providers and families would face immediate uncertainty.
States Decry Unconstitutional "Fishing Expedition"
The states argue the administration's actions are unconstitutional and politically motivated, targeting President Trump's political adversaries rather than addressing genuine fraud concerns. The federal government had requested extensive data from the states, including the names and Social Security numbers of all benefit recipients since 2022—a move the states label a "fishing expedition."
U.S. District Judge Arun Subramanian, who was nominated by former President Joe Biden, granted the temporary order. The ruling will remain in effect until further arguments are presented in court. A lawyer for the federal government, Kamika Shaw, stated it was her understanding that the money had not yet stopped flowing to the states.
This legal battle highlights the ongoing tension between the federal government and states over the administration of social safety net programs and the use of executive power to influence policy outcomes.
