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Judge Temporarily Blocks Trump Administration’s Freeze of $10 Billion in Child-Care and Social Service Funds

The order preserves funding pending a court fight over HHS’s fraud rationale.

Overview

  • U.S. District Judge Arun Subramanian issued a 14-day temporary restraining order requiring access to CCDF, TANF and SSBG funds for California, New York, Minnesota, Illinois and Colorado.
  • The five states sued after HHS moved this week to pause roughly $10 billion, alleging illegal payments and systemic fraud without presenting state-specific evidence.
  • HHS demanded extensive records — including child-care attendance files and recipients’ names and Social Security numbers — with submissions due Jan. 20.
  • State officials and providers warned the freeze would trigger immediate cash-flow disruptions, threatening payrolls, child-care slots and services for low-income families.
  • The ruling does not decide the policy’s legality, and the administration signaled it may appeal as briefing on a longer injunction proceeds.