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A federal judge on Friday ordered the Trump administration to continue sending billions of dollars in child care subsidies and other social service funds to five Democratic-led states, temporarily blocking an effort by the administration to withhold the money amid allegations of fraud.
U.S. District Judge Vernon Broderick granted the states’ request for a preliminary injunction, barring the administration from cutting off the funds while a lawsuit challenging the move proceeds. Broderick was nominated by former President Barack Obama.
The ruling applies to California, Colorado, Illinois, Minnesota and New York, which together receive more than $10 billion annually from the affected programs, according to court filings.
Federal officials did not immediately comment Friday night. A spokesperson for the U.S. attorney’s office for the Southern District of New York declined to comment, and attorneys for the government did not respond to emails seeking comment.
Programs affected
The funding at issue supports several major federal safety-net programs, including:
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The Child Care and Development Fund, which helps subsidize child care for about 1.3 million children nationwide from low-income families.
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Temporary Assistance for Needy Families, which provides cash assistance and job training.
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The Social Services Block Grant, which supports a range of social programs administered by states.
Two temporary court orders issued in January had already prevented the administration from cutting off the money, but the most recent order was set to expire Friday without further court action.
States argue freeze would cause widespread harm
New York Attorney General Letitia James welcomed the ruling, saying the administration’s actions would have caused immediate harm to vulnerable families.
“Every day, hundreds of thousands of New Yorkers rely on these funds to pay for necessities and provide their children a safe place to learn,” James said in a statement. “This illegal funding freeze would have caused severe chaos in the lives of some of the most vulnerable families in our state.”
The states argue that abruptly withholding funds would force child care centers to close or lay off workers, potentially leaving parents unable to work and disrupting care for families beyond those directly receiving subsidies.
Administration’s rationale shifts
The Trump administration’s justification for withholding the funds has evolved over the course of the litigation.
When the U.S. Department of Health and Human Services first announced the move, it said there was “reason to believe” the states were providing benefits to people who are in the country illegally. The agency did not specify the source of that information.
During a court hearing, however, a federal government attorney acknowledged that the action was largely prompted by news reports raising concerns about possible fraud.
The administration initially described the action as a funding “freeze,” but government lawyers later told the court that the money was not frozen outright. Instead, they said, the states were being required to submit additional documentation before drawing down funds.
Federal officials have demanded more detailed records from the states, including names and Social Security numbers for beneficiaries of certain programs.
Broader scrutiny of Minnesota programs
Minnesota has been a particular focus of the administration’s scrutiny following high-profile fraud cases and newer allegations involving programs administered in the state. Some of those cases have involved members of Minnesota’s Somali community, though the state disputes the administration’s broader claims.
In addition to heightened requirements for the five Democratic-led states, the administration has imposed new reporting obligations on all states participating in the child care subsidy program before allowing funds to be accessed.
The lawsuit will continue as the case moves forward, but the ruling ensures that funding will continue to flow — at least for now.
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