MINNEAPOLIS, Minn. — A federal judge on Friday issued a temporary injunction preventing the Trump administration from halting federal childcare subsidies in five Democratic-led states, including Minnesota, California, New York, Colorado, and Illinois. The move comes amid a contentious dispute over allegations of fraud within federally funded childcare and family assistance programs.
U.S. District Judge Arun Subramanian, appointed by President Biden, refrained from ruling on the ultimate legality of the funding freeze but determined that the states had demonstrated sufficient grounds to maintain the status quo for at least two weeks while the case proceeds. The injunction temporarily blocks the Department of Health and Human Services (HHS) from withholding more than $10 billion in federal funds allocated to programs such as the Child Care and Development Fund, Temporary Assistance for Needy Families, and the Social Services Block Grant.
Earlier this week, HHS announced its decision to suspend funding in the five states, citing concerns that the programs were disbursing benefits to individuals residing in the country illegally. Deputy Secretary Jim O’Neill emphasized the importance of ensuring that federal resources are used lawfully and for their intended purpose. However, the affected states argued in court filings that the administration lacked the legal authority to unilaterally terminate the funds and warned that the freeze was causing “operational chaos” for programs serving vulnerable families.
New York Attorney General Letitia James, who is spearheading the lawsuit, hailed the ruling as a “critical victory for families whose lives have been upended by this administration’s cruelty.” The states collectively receive substantial federal support to assist low-income families with childcare and social services, making the funding suspension a significant disruption.
This legal battle unfolds against a backdrop of heightened scrutiny over federal aid programs and ongoing debates about immigration enforcement. The Trump administration’s action aligns with broader efforts to crack down on alleged fraud and misuse of taxpayer dollars. In response, the Department of Justice recently created a new assistant attorney general position to lead an anti-fraud task force, underscoring the administration’s commitment to investigating and prosecuting fraudulent claims.
As the court proceedings continue, the injunction ensures that families dependent on these programs will not face immediate loss of support. The case highlights the complex intersection of immigration policy, federal funding, and social welfare programs. Observers note that the outcome could have far-reaching implications for how federal funds are administered and monitored across states.
For more information on federal childcare funding and oversight, visit the Office of Child Care and the Department of Health and Human Services. Details on the Temporary Assistance for Needy Families program can be found at the Office of Family Assistance. The ongoing litigation and related developments are also being tracked by the Department of Justice.
The Trump administration has yet to comment publicly on the judge’s ruling, and further legal arguments are expected in the coming weeks as the states seek a permanent resolution.


