Five states will continue to receive federal child care and family assistance funds after a judge temporarily halted the Trump administration’s funding freeze amid ongoing legal disputes.
A federal judge has issued a temporary order preventing the Trump administration from cutting off federal funding associated with child care subsidies and other support programs for low-income families. This ruling allows funds to keep flowing, at least for the time being, to five states led by Democratic governors that have challenged the administration’s decision in court.
The states—California, Colorado, Illinois, Minnesota, and New York—filed a lawsuit claiming that a policy introduced earlier this week to pause funding for three federal grant programs has already begun to disrupt operations. They argued that the sudden freeze has caused confusion among agencies attempting to maintain their programs without clear guidance on when or if the funding will be restored.
During a hearing on Friday, attorneys representing the states contended that the administration had failed to provide a lawful justification for withholding the funds. The U.S. Department of Health and Human Services defended the funding pause, stating it had “reason to believe” that the states were providing benefits to individuals residing in the country illegally. However, the agency has not presented evidence to substantiate this claim or explained why these five states were specifically targeted while others were not.
The funding in question involves three significant streams: the Child Care and Development Fund, which assists low-income families with child care costs; the Temporary Assistance for Needy Families program, which provides cash assistance and job training; and the Social Services Block Grant, a smaller fund that supports a variety of social service programs.
The five states collectively receive over $10 billion annually through these programs, highlighting the potential impact of any disruption in funding.
U.S. District Judge Arun Subramanian, appointed by former President Joe Biden, did not rule on the legality of the funding freeze itself. However, he stated that the states had met the necessary standard to “protect the status quo” and ordered that funding continue for at least the next 14 days while the case is being argued.
Additionally, court documents reveal that the federal government has requested extensive records from the states, including the names and Social Security numbers of all individuals who have received benefits under certain programs since 2022. The states argue that this request crosses constitutional boundaries and appears to target political opponents of President Trump rather than focusing on addressing fraud, which they assert is already closely monitored at the state level.
During the Friday hearing, Jessica Ranucci, an attorney with the New York attorney general’s office, noted that at least four of the states had already experienced delays in receiving funds. She cautioned that any interruption in child care funding would have immediate repercussions, creating uncertainty for providers and families reliant on this support.
In response, Kamika Shaw, a lawyer representing the federal government, claimed that, to her knowledge, funding had not been entirely cut off and continued to flow to the states.
This legal battle underscores the ongoing tensions between state and federal authorities regarding funding for essential social programs, particularly as the nation grapples with issues surrounding immigration and welfare support.
According to The American Bazaar, the situation remains fluid as the court case progresses.