Judge says Trump administration can’t block child care, other programme money for 5 states for now

A federal court has stopped the Trump administration from withholding billions in child care and welfare funding to California, Colorado, Illinois, Minnesota and New York, saying the states met the threshold to preserve the status quo while the case is heard.

The states say the freeze has already delayed billions of dollars and created operational chaos for families and service providers.A federal judge has barred the Trump administration from blocking child care and welfare funds to five Democratic-led states for at least 14 days. (AP Photo/Alex Brandon)
By: AP
3 min readJan 10, 2026 08:14 AM IST First published on: Jan 10, 2026 at 08:14 AM IST

A federal judge has ruled that President Donald Trump’s administration cannot block federal money for child care subsidies and other programmes aimed at supporting needy children and their families from flowing to five Democratic-led states for now.

The states of California, Colorado, Illinois, Minnesota and New York argued that a policy announced Tuesday to freeze funds for three grant programmes is having an immediate impact on them and creating “operational chaos.” In court filings and a hearing earlier Friday, the states contended that the government did not have a legal reason for holding back the money from those states.

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The US Department of Health and Human Services said it was pausing the funding because it had “reason to believe” the states were granting benefits to people in the country illegally, though it did not provide evidence or explain why it was targeting those states and not others.

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