federal funding

A federal judge in New York has temporarily blocked the Trump administration’s move to freeze $10 billion in child-care funds in five Democrat-led states including California.

The ruling Friday afternoon capped a tumultuous stretch that began earlier this week when the U.S. Department of Health and Human Services told California officials and those in Colorado, Illinois, Minnesota and New York that it would freeze federal funding over fraud concerns.

On Thursday the states sued the administration in federal court in Manhattan. The states sought a temporary restraining order, asking the court to block the funding freeze and the administration’s demands for large volumes of administrative data.

An attorney for the states argued Friday morning that there was an immediate need for funding — and that withholding it would cause chaos by depriving families of their ability to pay for child care, and would harm child-care providers who would lose income.

In a brief ruling, Judge Arun Subramanian said that “good cause has been shown for the issuance of a temporary restraining order.”

The White House did not immediately respond to a request for comment.

The federal government’s effort has been viewed as a broad attack on social services in California, and jolted tens of thousands of working families and the state’s child-care industry. Providers told The Times that the funding freeze could imperil child-care centers, many of which operate on slim margins.

“The underscoring issue is that child care and these other federally funded social services programs are major family supports,” said Nina Buthee, executive director of EveryChild California. “They are essential infrastructure that our communities need and depend on, and should not be political tools. So the fact that this judge went in and blocked this very dramatic freeze, I think is only a good thing.”

In a trio of Jan. 6 letters addressed to Gov. Gavin Newsom, the U.S. Department of Health and Human Services said it was concerned there had been “potential for extensive and systemic fraud” in child care and other social services programs that rely on federal funding, and had “reason to believe” that the state was “illicitly providing illegal aliens” with benefits.

The letters did not provide evidence to support the claims. State officials have said the suggestions of fraud are unsubstantiated.

Newsom has said he welcomes any fraud investigations the federal government might conduct, but said cutting off funding hurts families who rely on the aid. According to the state Legislative Analyst’s Office, about $1.4 billion in federal child-care funding was frozen per the letters from Health and Human Services.

“You want to support families? You believe in families? Then you believe in supporting child care and child-care workers in the workforce,” Newsom told MS NOW.

After Subramanian issued the ruling, Newsom’s press office said on X that “the feds went ghost-hunting for widespread ‘fraud’ (with no evidence) — and ended up trying to rip child care and food from kids.”

“It took a federal judge less than 24 hours to shut down Trump’s politically motivated child care cuts in California,” the account posted.

In instituting the freeze, Health and Human Services had said it would review how the federal money had been used by the state, and was restricting access to additional money amid its inquiries. The federal government asked for various data, including attendance documentation for child care. It also demanded beefed-up fiscal accountability requirements.

“Again and again, President Trump has shown a willingness to throw vulnerable children, seniors, and families under the bus if he thinks it will advance his vendetta against Democratic-led states,” Bonta said in a statement following the ruling. “Cutting funding for childcare and other family assistance is cruel, reckless, and most importantly, illegal.”

For Laura Pryor, research director at the California Budget & Policy Center, it is “a sigh of relief.”

California is suing the Trump administration over its “baseless and cruel” decision to freeze $10 billion in federal funding for child care and family assistance allocated to California and four other Democratic-led states, Atty. Gen. Rob Bonta announced Thursday.

The lawsuit was filed jointly by the five states targeted by the freeze — California, New York, Minnesota, Illinois and Colorado — over the Trump administration’s allegations of widespread fraud within their welfare systems. California alone is facing a loss of about $5 billion in funding, including $1.4 billion for child-care programs.

The lawsuit alleges that the freeze is based on unfounded claims of fraud and infringes on Congress’ spending power as enshrined in the U.S. Constitution. The White House did not immediately respond to a request for comment.

“This is just the latest example of Trump’s willingness to throw vulnerable children, vulnerable families and seniors under the bus if he thinks it will advance his vendetta against California and Democratic-led states,” Bonta said at a Thursday evening news conference.

The $10-billion funding freeze follows the administration’s decision to freeze $185 million in child-care funds to Minnesota, where federal officials allege that as much as half of the roughly $18 billion paid to 14 state-run programs since 2018 may have been fraudulent. Amid the fallout, Gov. Tim Walz has ordered a third-party audit and announced that he will not seek a third term.

Bonta said that letters sent by the U.S. Department of Health and Human Services announcing the freeze Tuesday provided no evidence to back up claims of widespread fraud and misuse of taxpayer dollars in California. The freeze applies to the Temporary Assistance for Needy Families program, the Social Services Block Grant program and the Child Care and Development Fund.

“This is funding that California parents count on to get the safe and reliable child care they need so that they can go to work and provide for their families,” he said. “It’s funding that helps families on the brink of homelessness keep roofs over their heads.”

Bonta also raised concerns regarding Health and Human Services’ request that California turn over all documents associated with the state’s implementation of the three programs. This requires the state to share personally identifiable information about program participants, a move Bonta called “deeply concerning and also deeply questionable.”

“The administration doesn’t have the authority to override the established, lawful process our states have already gone through to submit plans and receive approval for these funds,” Bonta said. “It doesn’t have the authority to override the U.S. Constitution and trample Congress’ power of the purse.”

The lawsuit was filed in federal court in Manhattan and marked the 53rd suit California had filed against the Trump administration since the president’s inauguration last January. It asks the court to block the funding freeze and the administration’s sweeping demands for documents and data.