The dispute is rooted in the Trump administration’s actions to withhold or restrict access to federal money for social services in five Democratic-led states, at least temporarily, while litigation plays out. On Friday, U.S. District Judge Vernon Broderick in New York sided with the states and granted a preliminary injunction and a stay, directing the administration to continue funding for child care subsidies and other programs covered by the states’ complaint.
Broderick’s ruling requires the federal government to keep paying the programs at issue in California, Colorado, Illinois, Minnesota and New York as the lawsuit advances. The states had asked for court relief after earlier temporary rulings issued in January would have expired, and they argued the federal action would disrupt services for people relying on the benefits while the case is pending.
The judge’s decision centers on three federal programs the states say millions of low-income families depend on. The Child Care and Development Fund subsidizes child care for 1.3 million children from low-income families nationally, the Temporary Assistance for Needy Families program provides cash assistance and job training, and the Social Services Block Grant provides a smaller amount of money that supports a range of social service programs.
In statements accompanying the court filing, New York Attorney General Letitia James said the funding freeze would have caused “severe chaos in the lives of some of the most vulnerable families in our state,” according to her remarks in a statement. California Attorney General Rob Bonta said in a statement that the Trump administration’s actions were “not only unlawful — they are cruel, targeting the most vulnerable among us.”
The federal government’s explanation has shifted as the case moved forward. When the U.S. Department of Health and Human Services announced it was withholding money, officials said there was “reason to believe” the states were granting benefits to people in the country illegally, and the administration did not initially describe where the information came from. In court, a federal government lawyer told the judge the withholding was largely in reaction to news reports about possible fraud.
Federal lawyers also disputed the way the states characterized the federal action. While the government’s initial news release used language about “froze” access to money, attorneys told Broderick that the administration was not blocking payment as much as it was requiring more information from the states before allowing additional funding.
The administration said it wants more records from the group of states, including names and Social Security numbers for beneficiaries of some of the programs. The states’ challenge, according to the court posture described in the report, asks the judge to stop the federal government from withholding funds while the legal dispute is resolved.
Advocates warned that cutting child care subsidies could cause layoffs or closures for day care providers that accept the subsidies. They said those impacts would affect both lower-income families who receive the subsidies and families who do not, and they argued that losing child care can make it difficult for parents to work.
The report also said the Trump administration has targeted multiple programs in Minnesota tied to previous fraud cases and new allegations, including allegations involving members of the state’s Somali community. In addition to heightened requirements for the four other Democratic-led states, the administration also required all states to submit more information about how they are using money in the child care program before the funds could be drawn down.
While attorneys for the federal government did not immediately respond to requests for comment, a spokesperson for the U.S. attorney’s office for the Southern District of New York declined to comment, according to the report. Broderick’s preliminary injunction and stay mean the five states will continue receiving the funds at least for now as the lawsuit proceeds through the courts.