Federal Judges Temporarily Block Trump Administration Funding Freezes in Multiple States

Federal Judges Issue Temporary Blocks on Trump Administration Funding Freezes for Social Services and Public Health Programs

Federal judges have issued temporary restraining orders against two separate actions by the Trump administration to freeze federal funding for social services programs and public health grants in several Democratic-led states. The administration cited concerns over fraud and revised agency priorities as reasons for the funding halts. The affected states filed lawsuits challenging these decisions, leading to 14-day blocks on the implementation of both funding freezes to allow for further legal arguments.

Social Services Funding Freeze: $10 Billion Blocked

On Tuesday, the Trump administration announced a plan to freeze over $10 billion in federal funding for social services programs in California, Colorado, Illinois, Minnesota, and New York. The U.S. Department of Health and Human Services (HHS) stated it believed these states were providing benefits to individuals in the country illegally and cited allegations of "massive amounts of fraud." HHS spokesperson Andrew Nixon stated the action was intended to ensure federal taxpayer dollars are used for legitimate purposes and to ensure compliance with federal law.

The programs impacted include:

• The Child Care and Development Fund (CCDF): Which subsidizes childcare for low-income families, serving approximately 1.3 million children.
• The Temporary Assistance for Needy Families (TANF) program: Which provides cash assistance and job training. Colorado typically receives about $135.6 million annually in TANF funding and served over 14,000 families the previous month.
• The Social Services Block Grant: A smaller fund supporting various programs.

These five states collectively receive more than $10 billion annually from these programs. Colorado alone was impacted by over $300 million, while approximately half of the targeted funding supported California programs. The administration requested extensive data from the states, including names and Social Security numbers of all beneficiaries from some programs since 2022.

The five states filed a lawsuit on Thursday in the U.S. District Court for the Southern District of New York.

They argued that the policy would have an immediate impact, create operational challenges, and lacked a legal basis for withholding the money. New York Attorney General Letitia James led the lawsuit, describing the administration's action as an unconstitutional abuse of power.

California Attorney General Rob Bonta expressed concern over the request for personally identifiable information. While a lawyer for Attorney General James's office stated that at least four states had already experienced funding delays, a federal government lawyer indicated that funds had not stopped flowing.

On Friday, U.S. District Judge Arun Subramanian temporarily blocked the administration from implementing the funding freeze for at least 14 days. Judge Subramanian stated that the five states met a legal threshold to "protect the status quo," allowing time for further arguments in court, without ruling on the legality of the funding freeze itself.

Public Health Grants Face Cuts: $600 Million Targeted

Separately, the Centers for Disease Control and Prevention (CDC) announced cuts of over $600 million to public health grants for California, Colorado, Illinois, and Minnesota. These grants were part of a bipartisan funding bill passed by Congress and signed into law by President Trump just weeks prior.

The Department of Health and Human Services (HHS) stated that the grants were being terminated due to their non-alignment with revised CDC priorities, which reflected a shift away from the concept of health equity. The grants support programs that track disease outbreaks, study health outcomes for LGBTQ+ individuals and communities of color, and assist cities in combating HIV and other sexually transmitted infections.

Officials in the four states argued that the cuts could be retaliation for their opposition to the administration's immigration enforcement policies. The states filed a lawsuit on Wednesday, contending that the cuts would cause irreparable harm and violate the Constitution by imposing retroactive conditions on congressionally approved funding.

On Thursday, U.S. District Judge Manish Shah issued a temporary restraining order, blocking the administration's action for 14 days.

In his accompanying opinion, Judge Shah noted that while the official reason for the cancellations was non-alignment with CDC priorities, "recent statements plausibly suggest that the reason for the direction [to cut the funds] is hostility to what the federal government calls 'sanctuary jurisdictions' or 'sanctuary cities.'"

Context: Administration's Focus on Fraud and Related Actions

These administration actions occurred amidst a broader focus on alleged benefits fraud. The administration established a new fraud-focused position within the Justice Department, reporting to the White House. Administration officials stated, without providing evidence, that immigrants are the main contributors to this fraud.

Allegations of fraud in Minnesota have been central to some of the administration's rationales. Federal prosecutors have pursued 78 individuals since 2022, resulting in 57 convictions related to a $250 million theft from a child-feeding program during the Covid-19 pandemic. Since 2021, over 90 individuals have faced federal charges in Minnesota due to alleged fraud schemes, including a $250 million "Feeding Our Future" case and identified "large-scale fraud" in a housing program and a program for children with autism. President Trump has publicly criticized Minnesota leaders regarding the scandal, and many defendants charged are of Somali descent. Conservative YouTube personality Nick Shirley also posted a video alleging fraud at Minneapolis daycares, though CBS News investigations found most facilities maintained active state licenses and had been inspected.

In a separate action, U.S. Agriculture Secretary Brooke Rollins announced a freeze of approximately $130 million annually in funding from her agency to Minnesota, citing the state's inability to prevent fraud schemes. Minnesota Attorney General Keith Ellison indicated intent to challenge this freeze in court.

Beyond the targeted states, the other 45 states face new requirements for social services programs, including checking attendance at childcare centers and providing "strong justification for the use of funds." The Trump administration had also previously taken other actions affecting some of these states, such as a presidential veto of a bill for a clean drinking water pipeline in Colorado and the cancellation of energy and transportation grants.