Saturday, January 10, 2026

Judge Blocks Trump from Freezing Child Care Funds


A Federal Judge on Friday, Temporarily Blocked the Trump (R) Administration from Freezing about $10 billion in Federal Funds for Child Care Grants and Family Assistance Earmarked for Five Democratic led States over what it had said were Concerns around Fraud.

The Decision by Judge Arun Subramanian comes a Day after: California, Colorado, Illinois, Minnesota, and New York, filed a Lawsuit with the U.S. District Court for the Southern District of New York, seeking a Temporary Restraining Order that would Allow them to continue Receiving those Funds.

The Order seeks “to protect the status quo while plaintiffs’ motion for a preliminary injunction is briefed and decided,” wrote Subramanian, a Biden (D) Appointee. “The order shall automatically expire in 14 days, subject to any further order from the Court.”

The Department of Health and Human Services (HHS) announced Tuesday that it had Frozen nearly $2.4 billion in Child Care Grants and $7.35 billion in Temporary Grants for Low-Income Families, as well as $869 million in Social Services Funds. Though the Department said it had “serious concerns about widespread fraud and misuse of taxpayer dollars in state-administered programs” and Alleged that those States may be wrongfully providing Services to Immigrants who are in the Country Illegally, it did Not provide any Evidence of Fraud.

The move by HHS threatens to Shut Down Day Care Centers and Strip Billions of Dollars in Aid, for the Nation’s most Vulnerable Families that is used to Help with Housing, Food, and Home Utility Costs.

HHS General Counsel Mike Stuart (R), said this week, that HHS “stands by its decision to take this action to defend American taxpayers.”

The States’ Attorneys General have Disputed the Department’s Assertions, saying that the Administration for Children and Families, which is within HHS, has presented No Proof of Fraud. Democratic Leaders in those States have Denounced the Suspension of Funds, and described the Move as Cruel and Politically Motivated.

On Friday, Minnesota Attorney General Keith Ellison (D) welcomed the Court’s Temporary Pause, saying in a Statement on Social Media that it would Protect “the most vulnerable Minnesota families. My team and I will be in court working to permanently block Trump’s illegal and deeply cruel actions”.

The Trump Administration’s Multistate Funding Freeze, broadens what it has described as a Crackdown on Welfare Fraud, which up until now had Primarily been Focused on Minnesota. This week, the State’s Governor, Tim Walz (D), announced that He was Dropping His Bid for Re-Election, amid Intense Scrutiny over the Fraud Investigation.

Reports late last year of Extensive Fraud in Minnesota’s Social Services system, in which Dozens of Individuals, most of them of Somali Descent, were Accused of Stealing Millions of Dollars in Government Funds over the past Five years, became a particular Point-of-Fixation for Trump. He has frequently used Disparaging Rhetoric to Attack the Somali Community and Referenced Fraud Cases in the State in Targeting Somalis in Immigration Enforcement Actions.

The Administration last month, Paused Child Care Payments to Multiple Minnesota Day Cares, following Allegations that the Centers had Improperly Collected Millions of Federal Dollars.










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