Judge blocks Trump from freezing $10 billion in child, family aid to five U.S. states

Judge blocks Trump from freezing $10 billion in child, family aid to five U.S. states
By: cnbc Posted On: January 09, 2026 View: 45

U.S. President Donald Trump holds an umbrella as he speaks to members of the media while departing the White House en route to Florida in Washington, D.C., U.S., Jan. 9, 2026.
Kevin Lamarque | Reuters

A U.S. judge on Friday temporarily blocked President Donald Trump's administration from freezing access by five Democratic-led states to more than $10 billion of federal funds for child care and family assistance based on what it said were concerns about fraud.

U.S. District Judge Arun Subramanian, an appointee of Democratic former President Joe Biden, said he issued a temporary restraining order for the reasons stated in a legal filing by California, Colorado, Illinois, Minnesota and New York, which filed the lawsuit.

The states sued the Trump administration late on Thursday, two days after the U.S. Department of Health and Human Services announced the freeze.

Funds that were frozen include more than $7 billion from the Temporary Assistance for Needy Families program, which provides cash to low-income families with children. The funds also included $2.4 billion from the Child Care and Development Fund, which helps make childcare more affordable, and about $870 million in social services grants for children.

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