Judge Halts Trump Admin From Freezing $10 Billion in Child Care Funds for 5 States

The Department of Health and Human Services said it was halting the funding due to concerns about ‘widespread fraud’ in state-administered programs.

New York Attorney General Letitia James at a press conference in New York City, on Oct. 21, 2025. Michael M. Santiago /Getty Images

A federal judge issued a temporary restraining order on Jan. 9 to prevent the Trump administration from withholding $10 billion in federal funds for child care and family assistance programs in five states.

Attorneys general in California, Colorado, Illinois, Minnesota, and New York filed a lawsuit on Jan. 8 after the Department of Health and Human Services (HHS) announced it was withholding the funds pending further review of state-administered programs due to concerns “about widespread fraud and misuse of taxpayer dollars.”