Five Democratic-led states sued the Trump administration over its freeze of $10 billion in federal welfare funding, alleging political motivation. A New York federal judge temporarily blocked the freeze on Friday, reinstating funds while the case proceeds.
Following the Trump administration's early January decision to withhold $10 billion from welfare programs—including the Child Care Development Fund, TANF, and Social Services Block Grant—in California, Colorado, Illinois, Minnesota, and New York over fraud concerns, the states fought back legally.
Illinois Gov. JB Pritzker called the freeze "purely political," noting all affected states have Democratic governors. Attorneys general from the states filed suit, arguing it unlawfully overrides Congress on spending and lacks evidence tying it to fraud. Illinois AG Kwame Raoul highlighted impacts on 150,000 children and $1 billion in aid. New York AG Letitia James deemed it "cruel" punishment for opposing the president, while California AG Rob Bonta compared it to past attacks on vulnerable groups.
HHS spokesman Andrew Nixon defended the move, accusing Democrat-led states of complicity in "massive fraud," including aid to those without legal status, and demanding historical data on recipients.
Late Friday, a New York district judge halted the freeze temporarily—potentially for two weeks—pending further proceedings. Benefits fraud remains a bipartisan issue, with billions in improper payments nationwide, including scandals in red states like Mississippi. Critics warn politicization could undermine safety-net programs serving millions.