Chicago – January 09, 2026
A U.S. federal judge on Friday issued a temporary restraining order, blocking President Donald Trump’s administration from withholding over $10 billion in federal child care and family assistance funds to five Democratic-led states. The ruling came swiftly after California, Colorado, Illinois, Minnesota, and New York filed a lawsuit challenging the Department of Health and Human Services’ (HHS) decision, which cited concerns over alleged fraud in state-managed programs.
U.S. District Judge Ar Subram, appointed by former President Joe Biden, granted the injunction following arguments that the freeze—announced earlier this week—would disrupt critical services for low-income families. The affected funding includes more than $7 billion from the Temporary Assistance for Needy Families (TANF) program, $2.4 billion from the Child Care and Development Fund (CCDF), and about $870 million in Social Services Block Grants.
HHS justified the action as a measure to ensure fiscal accountability amid reports of widespread fraud, particularly in Minnesota’s welfare systems. Democratic governors, including New York’s Kathy Hochul and Illinois’ JB Pritzker, decried it as politically motivated retaliation against blue states. The order remains in effect pending further hearings, preserving aid access for vulnerable children and families nationwide.
