Judge blocks Trump from freezing child care funds
By: Eduardo Cuevas
USA Today
..... A federal judge on January 9 [2026] temporarily blocked the Trump administration form freezing $1 billion in federal funds for child care programs in five Democratic-led states.
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On January 6, [2026] the Department of Helaht and Human Services announced it would halt funds, in what officials said came from the administration's allegations about fraud and misuse of taxpayer dollars in state-run programs. It also alleges, without providing evidence, that non-citizen ineligible for benefits may have improperly use the funds.
..... Top prosecutors from California, Colorado, Illinois, Minnesota and New York field a lawsuit January 8 [2026] against HHS to return approximately 410 billion for these programs for child care and low-income families.
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In a two-page order issued January 9, [2026] federal Judge Arun Subramainian, of the Southern District of New York, granted a temporary restraining order for the states, preventing the administration from freezing funds for now.
..... "Once again, our most vulnerable families are being forced to bear the brunt of this administration's campaign of chaos and retribution," New York Attorney Gen real Letitia James, who has frequently led lawsuits against President Donald Trump, told reporters January 9. [2026]
..... Prosecutors field the lawsuit in Manhattan federal court. The lawsuit requests the return of congressionally approved aid for the Child Card and development Fund, the Temporary Assistance for Needy Families, and the Social Service Block Grant. Attorneys general said the federal government enacted a "shoot first, ask questions later' approach in a January 6 [2026] announcement instead of undergoing statutory processes to identify fraud or other abuses.
..... HHS referred USA Today to a Janauary8 [2026] post on X from agency General Counsel Mike Stuard, who said, "It's unfortunate that these Attorney Generals from these Democrat-led states are less focused on reducing fraud and more focused on partisan political stunts."
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"HHS stands by its decision to take this action to defend American taxpayers," Stuart added. "We identified serious concerns in these states that warranted immediate review and action."
..... HHS didn't respond to a follow-up question about the department's concerns, through Minnesota's ongoing scandal over COVID-19 pandemic-era loan has erupted as a partisan issue. Trump a Republican, previously announced plans to investigate other Democratic states, including California,, following the Minnesota scandal.
..... "We have a responsibility to protect taxpayer dollars and ensure these programs serve the families they were cerated to help," Alex J. Adams, HHS assistant secretary for children and families, said in a statement. "When there are credible concerns about fraud or misuse , we will act."
..... The five attorneys general said they hadn't been given infiltration on issues citied by the administration.
..... Minnesota Attorney General Keith Ellison specifically cited right wing YouTuber Nick Shirley's viral video about alleged fraud at day cares in the state, which prompted the aministraiton first freeze of federal funds for small-business loans.
..... The administration has broken some very clear laws when trying to make these changes," Ellison said. "They've given no legal justification for this funding freeze. They've ignored clear requirements for making the cuts of these programs."
..... Colorado Attorney Gen real Phil Weiser said questions should be asked about what fraud exists and how to address it.
..... "That's not what this is about," he said. "The tell is how the response is designed, [which] is one that's designed to punish and to harm, not to address fraud."
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Subramanian's order expires in 14 days pending further order from the court as the case continues.