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Five states sue over Trump freezing $10 billion in childcare, family assistance funds

Five Democratic-led states challenge the Trump administration's freeze on $10 billion in childcare and social services funds, citing lack of evidence and due process.

  • On Thursday, five Democratic-led states filed a lawsuit in U.S. District Court for the Southern District of New York challenging a federal freeze on child-care funds.
  • The U.S. Department of Health and Human Services said it froze funds citing concerns about "widespread fraud and misuse of taxpayer dollars," but the lawsuit alleges the freeze was driven by viral misinformation and political rhetoric without evidence or due process.
  • Funding breakdowns reveal the freeze affects $7.3 billion from Temporary Assistance for Needy Families, nearly $2.4 billion from the Child Care and Development Fund, $869 million in social services grants and $185 million Minnesota freeze.
  • Providers and advocates say the freeze endangers low-income families, children and people with disabilities, with Mero Kaya warning four metro Denver centers supporting nearly 300 kids could shut without federal funds.
  • Against a backdrop of repeated litigation, Democratic attorneys general allege illegal funding cuts while Andrew Nixon said, `Under the Trump Administration, we are ensuring that federal taxpayer dollars are being used for legitimate purposes.
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The Billings GazetteThe Billings Gazette
+15 Reposted by 15 other sources
Center

Judge: Trump administration can't block child care, other money for 5 states for now

California, Colorado, Illinois, Minnesota and New York argued that the government did not have a legal reason for holding back the funds.

·Billings, United States
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Center

New York, Jan. 9 (EFE).- Five Democratic states, led by New York, filed a lawsuit against the administration of President Donald Trump for freezing $10 billion for social services, announced their prosecutors this Friday at a joint press conference. The freezing of funds for Minnesota, New York, Illinois, California and Colorado, confirmed by the Department of Health and Human Services, will apply to temporary assistance items for needy families…

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KTVB broke the news in Boise, United States on Thursday, January 8, 2026.
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