A federal judge on Friday temporarily blocked the Trump administration’s $10 billion freeze on social safety net funding, restoring critical grants to five Democratic-led states and halting a move that officials warned was already disrupting essential services for low-income families.
U.S. District Judge Arun Subramanian granted a temporary restraining order requested by California, Colorado, Illinois, Minnesota and New York, preventing the Department of Health and Human Services (HHS) from enforcing the funding freeze while the case proceeds. The order is designed to “protect the status quo” and will remain in effect for 14 days unless the court takes further action.
The freeze targeted federal assistance programs that support families with children, including the Child Care and Development Fund, the Temporary Assistance for Needy Families (TANF) program and the Social Services Block Grant.
According to The Associated Press, state officials said the sudden halt in funding was already causing “operational chaos” across agencies responsible for childcare, housing support and family assistance.
Earlier this week, HHS defended the funding suspension, citing “serious concerns about widespread fraud and misuse of taxpayer dollars in state-administered programs.” The agency’s action followed heightened scrutiny from Republicans after a major welfare fraud scandal involving federal funds emerged in Minnesota.
State leaders pushed back strongly, arguing the freeze was unlawful and risked harming vulnerable populations. New York Attorney General Letitia James (D) welcomed the court’s decision, calling it a necessary intervention to protect families who rely on the funding.
“This decision is a critical victory for families whose lives have been upended by this administration’s cruelty. From childcare to shelter services for survivors of domestic violence, these funds provide resources that hundreds of thousands of New Yorkers depend on,” James said in a statement.
“This illegal funding freeze should have never happened, and I will keep fighting to uphold the law and protect funding that our communities need,” she added.
The legal battle now moves forward as the administration prepares to defend the freeze in court, setting up a broader confrontation over federal oversight, welfare fraud prevention and the limits of executive authority over congressionally approved spending.
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