Overview
- U.S. District Judge Arun Subramanian issued a 14-day temporary restraining order that keeps money flowing to California, Colorado, Illinois, Minnesota and New York while the case proceeds.
- The order instructs the federal government to remove restrictions on drawing down TANF, the Child Care and Development Fund and the Social Services Block Grant, which together total about $10 billion a year for the five states.
- Attorneys general led by New York’s Letitia James sued in the Southern District of New York, arguing the freeze is unlawful and politically motivated and warning it would cause immediate harm to providers and families.
- HHS said it had reason to believe the states granted benefits to people in the country illegally and demanded extensive records, including recipient names and Social Security numbers and child-care attendance documentation, with a Jan. 20 deadline.
- Administration officials said they will comply with the court’s order but intend to contest it and may appeal, while continuing broader fraud inquiries and tightened verification demands.