Federal Judge Blocks Trump’s $10B Child Care Funding Freeze
A federal judge has ruled that President Donald Trump’s administration cannot block $10 billion in annual federal funding for child care subsidies and family assistance programs flowing to five Democratic-led states, at least for the next two weeks.
The Ruling
U.S. District Judge Arun Subramanian issued the decision Friday, determining that California, Colorado, Illinois, Minnesota, and New York had met the legal threshold to protect the status quo while the case proceeds through the courts. The judge did not rule on the legality of the funding freeze itself, but said the states demonstrated sufficient grounds for a temporary restraining order lasting at least 14 days.[1]
The Department of Health and Human Services announced the freeze Tuesday, claiming it had “reason to believe” the five states were improperly granting benefits to people in the country illegally. The agency did not provide evidence or explain why it targeted these states specifically.[1]
What Funding Is At Stake
The freeze affects three federal programs:[1]
- Child Care and Development Fund: Subsidizes child care for low-income families
- Temporary Assistance for Needy Families: Provides cash assistance and job training
- Social Services Block Grant: Funds various social service programs
California alone faces approximately $5 billion frozen across the three programs. The total freeze encompasses $7.35 billion in TANF funds, $2.4 billion in child care funding, and $869 million in social services grants across all five states.[3]
Legal Challenge and Constitutional Claims
The five states filed suit Thursday, with attorneys general from each state calling the freeze an unconstitutional abuse of power. They allege the administration violated the Administrative Procedure Act, the Separation of Powers doctrine, and the Constitution’s Appropriations and Spending Clauses.[3]
“The states contended that the government did not have a legal reason for holding back the money from those states,” according to court filings.[1] California Attorney General Rob Bonta stated: “The American people are sick and tired of President Trump’s lawlessness, lies, and misinformation campaigns. It is especially pathetic that his Administration’s actions are inflicting harm on the most vulnerable among us.”[3]
The Trigger
The funding freeze reportedly stems from a social media video claiming fraud at Somali-run child care centers in Minnesota. The allegations have since spread concerns among Somali childcare providers in San Diego and other communities.[2]
Immediate Impact
Jessica Ranucci, a lawyer in the New York Attorney General’s office, warned during Friday’s hearing that at least four states had already experienced money delays. She emphasized that without child care funds, “there will be immediate uncertainty for providers and families who rely on the programs.”[1]
However, a government lawyer countered that funding had not actually stopped flowing to the states.[1] The temporary restraining order provides breathing room for the legal arguments to develop over the coming weeks.
