On January 9, 2026, a federal judge temporarily blocked the Trump administration from halting over $10 billion in child care and social services funding to five Democrat-led states—California, Colorado, Illinois, Minnesota, and New York—amid allegations of fraud.
• Judge's Decision: New York District Judge Arun Subramanian issued a 14-day temporary restraining order following a lawsuit from the five states. He determined that the states had shown "good cause" for the urgency of their case, indicating that the funding freeze would lead to serious negative impacts.
• Background of the Lawsuit: The Trump administration announced earlier in the week its decision to freeze funding from the Department of Health and Human Services (HHS), citing concerns over fraud, including allegations that benefits were being improperly given to undocumented immigrants. The states responded with legal action, arguing that the freeze was politically motivated and unconstitutional.
• Resources Affected: The proposed cuts included substantial amounts from programs designed to support low-income families, such as over $7 billion from the Temporary Assistance for Needy Families program and $2.4 billion from the Child Care and Development Fund.
• Reactions: New York Attorney General Letitia James hailed the ruling as a victory, emphasizing the importance of the funding for vulnerable populations reliant on these social services. Meanwhile, HHS Deputy Secretary Jim O'Neill stated they would appeal the ruling and continue their quest to prevent fraud.
• Next Steps: The Trump administration plans to follow the court's order while pursuing an appeal. They have requested detailed records from the states regarding funding recipients from 2019 to 2025.
The recent court ruling is a significant halt to the Trump administration's efforts to cut social services funding over fraud concerns. It highlights the ongoing tensions between federal actions and state responses, particularly around social welfare programs. The case underscores the legal battles surrounding administration policies and their impact on vulnerable communities.
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