Court blocks Trump admin from cutting $10B in child care and social services funds to 5 blue states

Federal Judge Arun Subramanian issued a 14‑day restraining order, saying states had met the legal threshold to preserve aid programs
UPDATED JAN 10, 2026
HHS confirmed a $10 billion freeze on five Democratic‑led states, namely California, Colorado, Illinois, Minnesota, and New York, saying it curbed fraud, while critics warned it hurt vulnerable communities (Getty Images)
HHS confirmed a $10 billion freeze on five Democratic‑led states, namely California, Colorado, Illinois, Minnesota, and New York, saying it curbed fraud, while critics warned it hurt vulnerable communities (Getty Images)

WASHINGTON, DC: Donald Trump’s attempt to cut more than $10 billion in social services and child care funding was temporarily blocked by a federal judge on Friday, January 9.

The decision rested with New York District Judge Arun Subramanian, who said that the 14-day restraining order was a good cause, noting that the Trump administration's freezing of funds would have a devastating impact. 

WASHINGTON, DC - FEBRUARY 13: U.S. President Donald Trump listens as Indian Prime Minister Narendra Modi speaks during a joint press conference in the East Room at the White House on February 13, 2025 in Washington, DC. Prime Minister Modi is meeting with President Trump to discuss tariffs and trade relations in the wake of President Trump’s announcement on implementing reciprocal tariffs. (Photo by Alex Wong/Getty Images)
President Donald Trump listens as Indian Prime Minister Narendra Modi speaks during a joint press conference in the East Room at the White House on February 13, 2025, in Washington, DC (Alex Wong/Getty Images)

Letitia James celebrates judge’s ruling 

During his ruling, Judge Arun Subramanian didn’t comment on the legality of the Trump administration freezing funds, but instead issued a ruling that the five states in question, California, Colorado, Illinois, Minnesota, and New York, had met the “legal threshold” to maintain the status quo, Fox News reported.

The decision, which extended up to 14 days, would give both parties more time to submit arguments on whether the cuts should be allowed.

New York Attorney General Letitia James took to X to celebrate Judge Subramaniam’s decision. She wrote that it was a “crucial victory” for families whose lives had been affected by the Trump administration’s cruelty.

NEW YORK, NEW YORK - MAY 21: New York Attorney General Letitia James points as she speaks during a p
New York Attorney General Letitia James points as she speaks during a press conference announcing legislation to reform police use of force laws in Manhattan on May 21, 2021, in New York City (Michael M Santiago/Getty Images)

“From childcare to shelter services for survivors of domestic violence, these funds provide resources that hundreds of thousands of New Yorkers depend on,” she wrote. 

James criticized Donald Trump’s administration and said that the “illegal funding freeze” should never have happened. She added that she would continue fighting to uphold the law to ensure that community needs were being met. 

Dem states argue the legal standing of Trump’s ban

During a court session held on Friday, the states of California, Colorado, Illinois, Minnesota, and New York argued that the Trump administration’s attempt to freeze funds would have an immediate impact on low-income families.

BERLIN, GERMANY - AUGUST 29: Robert F. Kennedy Jr., nephew of former U.S. President John F. Kennedy,
Robert F Kennedy Jr, nephew of former President John F Kennedy, speaks to people from a wide spectrum,  gathered under the Victory Column in the city center to hear speeches during a protest against coronavirus-related restrictions and government policy on August 29, 2020, in Berlin, Germany (Sean Gallup/Getty Images)

The representatives also contested the legality of the ban, noting that the government did not have a legal reason to withhold funds in their respective states. 

The grants that were at risk of being impacted through the HHS ban included the Child Care and Development Fund, the Temporary Assistance for Needy Families program, and the Social Services Block Grant.

Jessica Ranucci, a lawyer working with Letitia James, said on Friday that four states out of the five were already facing a delay while receiving government funds. She argued that without childcare funds, there would be immediate uncertainty for families who relied on the government programs. 

Health and Human Services Secretary Robert Kennedy Jr for a Senate Finance Committee hearing at the Dirksen Senate Office Building on September 4, 2025, in Washington, DC. The committee met to hear testimony on President Trump's 2026 health care agenda (Andrew Harnik/Getty Images)
Health and Human Services Secretary Robert Kennedy Jr for a Senate Finance Committee hearing at the Dirksen Senate Office Building on September 4, 2025, in Washington, DC (Andrew Harnik/Getty Images)

HHS suspends $10 billion in funds for 5 Dem states

The Department of Health and Human Services confirmed that it was moving to block funds for five democratic states on Tuesday.

“For too long, Democrat-led states and Governors have been complicit in allowing massive amounts of fraud to occur under their watch,” a HHS spokesman told ABC News.

He added that the Trump administration was trying to ensure that taxpayer dollars were being used for legitimate purposes. 

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