New York and Four Other States Sue Trump Administration Over $10 Billion Funding Freeze for Low-Income Families
A federal lawsuit has been filed by New York and four other states against the Trump administration, alleging that a sweeping freeze on over $10 billion in federal funding for child care and anti-poverty programs is unlawful and unfair to hundreds of thousands of low-income families. The funding freeze, which affects New York as well as California, Colorado, Illinois, and Minnesota, has sparked outrage among state leaders and advocates, who argue that the administration's decision is arbitrary and lacks evidence.
The lawsuit, filed in Manhattan federal court, seeks to block the U.S. Department of Health and Human Services from withholding funds from three major programs: the Child Care and Development Fund, Temporary Assistance for Needy Families (TANF), and the Social Services Block Grant. These programs provide critical funding for child care subsidies, direct cash assistance to low-income families, and other essential services.
State officials claim that the freeze will have devastating consequences for families, including forcing parents to miss work or leave children in unsuitable settings, while providers may be forced to cut staff or close altogether. The states argue that existing oversight mechanisms, such as regular audits and reporting requirements, already address concerns about fraud.
In contrast, the Trump administration claims that the funding freeze is necessary to investigate "potential" fraud in child care programs, citing recent allegations in Minnesota social service programs. However, state officials say these allegations are unsubstantiated and that the administration has failed to follow statutory procedures for addressing alleged wrongdoing.
New York Attorney General Letitia James and her counterparts in other states argue that the freeze violates federal law and the Constitution by overriding Congress' power over spending and bypassing required procedures for addressing fraud. "Once again, the most vulnerable families in our communities are bearing the brunt of this administration's campaign of chaos and retribution," James said in a statement.
The White House has declined to comment on the lawsuit, while Health and Human Services General Counsel Mike Stuart defended the decision, stating that "waste, fraud, and abuse will not be tolerated" in the Trump administration. A virtual press conference by state leaders is planned for Friday afternoon to discuss the lawsuit further.
As New York moves forward with plans to expand access to child care subsidies, the funding dispute threatens to complicate these efforts. The lawsuit marks another challenge to the Trump administration's policy decisions, which have already been criticized for their impact on vulnerable populations.
A federal lawsuit has been filed by New York and four other states against the Trump administration, alleging that a sweeping freeze on over $10 billion in federal funding for child care and anti-poverty programs is unlawful and unfair to hundreds of thousands of low-income families. The funding freeze, which affects New York as well as California, Colorado, Illinois, and Minnesota, has sparked outrage among state leaders and advocates, who argue that the administration's decision is arbitrary and lacks evidence.
The lawsuit, filed in Manhattan federal court, seeks to block the U.S. Department of Health and Human Services from withholding funds from three major programs: the Child Care and Development Fund, Temporary Assistance for Needy Families (TANF), and the Social Services Block Grant. These programs provide critical funding for child care subsidies, direct cash assistance to low-income families, and other essential services.
State officials claim that the freeze will have devastating consequences for families, including forcing parents to miss work or leave children in unsuitable settings, while providers may be forced to cut staff or close altogether. The states argue that existing oversight mechanisms, such as regular audits and reporting requirements, already address concerns about fraud.
In contrast, the Trump administration claims that the funding freeze is necessary to investigate "potential" fraud in child care programs, citing recent allegations in Minnesota social service programs. However, state officials say these allegations are unsubstantiated and that the administration has failed to follow statutory procedures for addressing alleged wrongdoing.
New York Attorney General Letitia James and her counterparts in other states argue that the freeze violates federal law and the Constitution by overriding Congress' power over spending and bypassing required procedures for addressing fraud. "Once again, the most vulnerable families in our communities are bearing the brunt of this administration's campaign of chaos and retribution," James said in a statement.
The White House has declined to comment on the lawsuit, while Health and Human Services General Counsel Mike Stuart defended the decision, stating that "waste, fraud, and abuse will not be tolerated" in the Trump administration. A virtual press conference by state leaders is planned for Friday afternoon to discuss the lawsuit further.
As New York moves forward with plans to expand access to child care subsidies, the funding dispute threatens to complicate these efforts. The lawsuit marks another challenge to the Trump administration's policy decisions, which have already been criticized for their impact on vulnerable populations.
. Like, what's next? Investigating how some families are actually managing to survive with barely enough money? 
I mean, come on, $10 billion is a huge chunk of change and they're just going to freeze it because of some unsubstantiated allegations? It sounds like a total cash grab 
. And meanwhile, actual problems aren't getting addressed, but "waste, fraud, and abuse" are. What's the real issue here? 
this whole thing just sounds fishy to me... a $10 billion freeze in funding for programs that help low-income families get back on their feet? it doesn't add up 
... Freezing $10 billion in funding for programs that actually help people? That's like putting a Band-Aid on a gunshot wound. The Trump admin's all about "investigating" potential fraud, but when it comes down to it, they're just looking for excuses to cut services and screw the little guy 
forcing parents to miss work or leave kids in subpar care is just horrific 
i mean can't the admin see that this would just cause more problems than it solves? like, isn't there a way to sniff out fraud without completely crippling these programs? 
we need more folks speaking out against policies that hurt the most vulnerable. and can we pls talk about how poorly written this whole thing sounds? all these vague claims of "potential" fraud 
and "waste, abuse, and neglect" 
? they're just freezing $10 billion in funding like that? it's insane! and the worst part is those low-income families who are going to suffer because of it... parents will be forced to choose between work and taking care of their kids, or even worse, leave them in subpar care. and the admin is all like "we're doing this to prevent fraud" but really they just haven't done their due diligence 
. hopefully they can get some sense into that admin office soon 
they're not gonna let the Trump admin just freeze up millions of dollars meant for low-income families without a fight. I mean, come on, if there's even a whiff of fraud going on, shouldn't we be looking into it rather than just cutting off funding altogether? It feels like this is just another example of how the current admin is all about playing hardball and screwing over people who need help the most 
This is absolute madness! $10 billion just gets frozen? That's a huge chunk of change that could've made a real difference in people's lives. I'm not buying the "investigation" story – sounds like a weak excuse to me. What's really going on here? Are they trying to pull the rug out from under low-income families right before election season? 
. And now they're saying it's to stop "waste" and "fraud"? But there's already laws in place for that stuff 
is a huge amount of money, and freezing it 
. The Trump administration's decision to freeze funding seems arbitrary 
and lacks evidence 
. I mean, what's the point of investigating "potential" fraud 
if there's no concrete proof? 
. I get that waste and abuse can happen, but shouldn't we try to find ways to address those issues instead of punishing everyone? 
, do we really need to make it harder for them? 
, so I think the states are right on the money 
. Congress has the power to decide how spending gets allocated 
and get some much-needed funding back to those families 
!
. And honestly, I think it's pretty rich that they're trying to investigate 'potential' fraud when they're the ones who've been accused of all sorts of shady stuff 
.
.
. Politicians always say they're looking out for the little guy, but sometimes it feels like they're just looking for excuses to cut services 
. Can't we just have a president who actually cares about making things better for everyone?