A federal judge on Friday temporarily barred the Trump administration from cutting off federal funding tied to child care subsidies and other programs that support low income children and their families. The ruling allows money to continue flowing, at least for now, to five states led by Democratic governors, which had challenged the administration’s move in court.
In their lawsuit, California, Colorado, Illinois, Minnesota and New York said a policy rolled out earlier this week to pause funding for three federal grant programs has already begun to disrupt operations on the ground. The states told the court the sudden freeze has thrown agencies into confusion as they try to keep programs running without clarity on when or if the money will be released.
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In written filings and during a hearing Friday, attorneys for the states argued the administration has not offered a lawful justification for withholding the funds.
The U.S. Department of Health and Human Services has defended the pause, saying it had “reason to believe” the states were providing benefits to people in the country illegally. The agency, however, has not offered evidence to support that claim or explained why those five states were singled out while others were not.
At issue are three major funding streams. They include the Child Care and Development Fund, which helps low income families afford child care; the Temporary Assistance for Needy Families program, which offers cash assistance and job training; and the Social Services Block Grant, a smaller pool of money that supports a wide range of social service programs.
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The five states told the court they collectively receive more than $10 billion each year through the affected programs, underscoring what they say is at stake if the funding is disrupted.
U.S. District Judge Arun Subramanian, an appointee of former President Joe Biden, stopped short of weighing in on whether the freeze itself is legal. Still, he said the states had met the standard needed “to protect the status quo” and ordered that funding continue for at least the next 14 days while the case is argued.
Court filings also show the federal government demanded extensive records from the states, including the names and Social Security numbers of everyone who has received benefits under some programs since 2022. The states say that request crosses constitutional lines and is aimed at targeting President Trump’s political opponents rather than addressing fraud, which they argue is already closely monitored at the state level.
During Friday’s telephone hearing, Jessica Ranucci, an attorney with the New York attorney general’s office, said at least four of the states had already seen delays after requesting funds. She warned that any interruption to child care money would quickly ripple out, creating uncertainty for providers and families who depend on the support.
A lawyer for the federal government, Kamika Shaw, countered that, to her understanding, the funding had not been fully cut off and continued to flow to the states.