Judge Blocks Trump Administration From Freezing $10 Billion in State Aid

U.S. District Judge Vernon Broderick issued a preliminary injunction and stay on February 6, 2026, blocking the Donald Trump administration from withholding more than $10 billion in annual social service funding from California, Colorado, Illinois, Minnesota, and New York. The ruling preserves the flow of funds for the Child Care and Development Fund, the Temporary Assistance for Needy Families program, and the Social Services Block Grant while the legal challenge proceeds.

The U.S. Department of Health and Human Services initially justified the freeze by claiming benefits were being distributed to undocumented immigrants. Government lawyers later shifted their reasoning, attributing the action to news reports of fraud and a demand for more beneficiary records, including Social Security numbers. HHS Deputy Secretary Jim O'Neill specifically alleged that Minnesota had allowed scammers to siphon millions in taxpayer dollars over the last decade.

Attorneys general from the affected states challenged the freeze in court, arguing the move was unlawful and would devastate low-income families. New York Attorney General Letitia James stated the freeze would have caused severe chaos for vulnerable families, while California Attorney General Rob Bonta characterized the actions as cruel. The injunction maintains a previous temporary restraining order granted by U.S. District Judge Arun Subramanian to preserve the status quo during the litigation.