Connect with us

Hi, what are you looking for?

Economy

Federal judge blocks Trump from cutting childcare funds to Democratic states over fraud concerns

A federal judge Friday temporarily blocked the Trump administration from stopping subsidies on childcare programs in five states, including Minnesota, amid allegations of fraud.

U.S. District Judge Arun Subramanian, a Biden appointee, didn’t rule on the legality of the funding freeze, but said the states had met the legal threshold to maintain the ‘status quo’ on funding for at least two weeks while arguments continue.

On Tuesday, the U.S. Department of Health and Human Services (HHS) said it would withhold funds for programs in five Democratic states over fraud concerns.

The programs include the Child Care and Development Fund, the Temporary Assistance for Needy Families program, and the Social Services Block Grant, all of which help needy families.

‘Families who rely on childcare and family assistance programs deserve confidence that these resources are used lawfully and for their intended purpose,’ HHS Deputy Secretary Jim O’Neill said in a statement on Tuesday.

The states, which include California, Colorado, Illinois, Minnesota and New York, argued in court filings that the federal government didn’t have the legal right to end the funds and that the new policy is creating ‘operational chaos’ in the states.

In total, the states said they receive more than $10 billion in federal funding for the programs. 

HHS said it had ‘reason to believe’ that the programs were offering funds to people in the country illegally.

New York Attorney General Letitia James, who is leading the lawsuit, called the ruling a ‘critical victory for families whose lives have been upended by this administration’s cruelty.’

Fox News Digital has reached out to HHS for comment.

This post appeared first on FOX NEWS

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.






    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Economy

    Top House Republicans are leading a bill to reverse the Biden administration’s decision to lift sanctions on a Chinese entity linked to the persecution...

    Editor's Pick

    The rise of Asian fast fashion retailer Shein already has Amazon on alert, but its plans of selling proprietary supply-chain technology and services to...

    Economy

    Minnesota Gov. Tim Walz is facing scrutiny from Republicans over what they say are pro-China remarks, including an interview in which the Democratic vice...

    Economy

    Ahead of a planned trip to China this week, U.S. Secretary of State Antony Blinken is reported to have alleged that Beijing is still...

    Disclaimer: Smartmerchantknow.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2026 smartmerchantknow.com