The Trump administration was temporarily blocked on Friday by a federal judge in New York from freezing billions in welfare funding for child care and social services programs.
U.S. District Judge Arun Subramanian’s order comes after the Department of Health and Human Services paused roughly $10 billion in funding to California, New York, Minnesota, Illinois, and Colorado on the basis of alleged widespread fraud, prompting a lawsuit from the five states. The funding flowed from the Child Care and Development Fund, the Temporary Assistance for Needy Families program, and the Social Services Block Grant.
Subramanian did not rule on the legality of the funding freeze but issued a temporary restraining order asserting that the states had met a legal threshold “to protect the status quo” on funding for two weeks. The judge’s action allows both sides additional time to present their legal arguments in court.
HHS believes the funding flowing to the state under the three programs has been subjected to fraud, citing the widespread money laundering of federal welfare funds reported in Minnesota.
The agency has also raised concerns that the dispersed funds are being used to benefit noncitizens and has now begun requiring justification and photo evidence for all child care-related payments nationwide.
“For too long, Democrat-led states and Governors have been complicit in allowing massive amounts of fraud to occur under their watch. Under the Trump administration, we are ensuring that federal taxpayer dollars are being used for legitimate purposes. We will ensure these states are following the law and protecting hard-earned taxpayer money,” HHS spokesman Andrew Nixon previously told the Washington Examiner.
California Attorney General Rob Bonta has said the administration has provided no evidence to support claims of widespread fraud or the misuse of taxpayer dollars in California.
“The importance of these programs to plaintiff states cannot be overstated — they provide cash assistance and fund services to help low-income and vulnerable children and families and individuals with disabilities,” California and four other states collectively wrote in their emergency motion requesting the restraining order.
