Five States Sue Trump Admin Over $10 Billion Freeze In Child-Care, Family-Assistance Funds
Authored by Aldgra Fredly via The Epoch Times,
Attorneys general in five states filed a lawsuit on Jan. 8 seeking to block the Trump administration from freezing $10 billion in federal funds for child care and family assistance programs.
The move came just two days after the Department of Health and Human Services (HHS) said it was withholding the funds for California, Colorado, Illinois, Minnesota, and New York, pending further review of state-administered programs due to concerns “about widespread fraud and misuse of taxpayer dollars.”
The freeze applies to $2.4 billion in Child Care and Development Fund, $7.35 billion in Temporary Assistance for Needy Families fund, and $869 million under the Social Services Block Grant, the agency said on Jan. 6.
HHS said its Administration for Children and Families has identified concerns indicating the benefits “may have been improperly provided to individuals who are not eligible under federal law.”
In their lawsuit, the states alleged that HHS exceeded its authority by withholding congressionally approved funds, arguing that the agency failed to provide a “legitimate justification” for the funding freeze or evidence to support its fraud claims.
The states further argued that the freeze was intended to pressure them into turning over documents related to the use of funding for the affected programs within two weeks, including “personally identifying information of millions of their residents.” They said that it was “an impossible timeline.”
The lawsuit seeks injunctive relief to prevent the government from withholding the funds and a court declaration that the freeze is unconstitutional.
“Once again, the most vulnerable families in our communities are bearing the brunt of this administration’s campaign of chaos and retribution,” New York Attorney General Letitia James, who is leading the coalition in pursuing legal action against HHS, said in a statement.
“As New Yorkers struggle with the rising cost of living, I will not allow this administration to play political games with the resources families need to help make ends meet.”
The Epoch Times reached out to the HHS for comment, but did not receive a response by the time of publication.
Prior to the funding freeze on the plaintiffs’ programs, HHS halted federal funding for child care programs in Minnesota amid an ongoing probe into allegations that the state had funneled funds to fraudulent daycares.
Deputy Health Secretary Jim O’Neill stated on Dec. 31 that he had asked Minnesota Gov. Tim Walz to provide a comprehensive audit of child care centers in Minnesota, covering records of attendance, licenses, complaints, investigations, and inspections.
Walz has defended his administration’s handling of fraud in state programs. The governor announced on Jan. 5 that he would not run for a third term in a bid to focus on resolving the issues.
Tyler Durden
Fri, 01/09/2026 – 15:25