A federal judge has granted an emergency motion sought by New York Attorney General Letitia James and the attorneys general of California, Colorado, Illinois, and Minnesota to stop the Trump administration from cutting off $10 billion in funds to help low-income families afford childcare, housing, food, and other necessities.
Judge Arun Subramanian of the U.S. District Court for the Southern District of New York held a hearing on the motion on Jan. 9 and shortly thereafter issued a temporary restraining order that tells the administration it must continue providing funds while the lawsuit James and the others had filed plays out.
On January 5 and 6, the administration had sent letters to New York, California, Colorado, Illinois, and Minnesota announcing that the Administration for Children and Families (ACF) was freezing funding for three critical programs: the Child Care and Development Fund (CCDF); Temporary Assistance for Needy Families (TANF); and the Social Services Block Grant (SSBG).
In New York, ACF funds provide essential support for hundreds of thousands of families every year. New York receives over $2.4 billion in TANF funds, which provide direct cash assistance to over 200,000 families throughout the state to help the families pay for housing, food, and other essentials. For Grant Year 2025, New York received $638 million in CCDF funds, which provide childcare for low-income families. New York also receives $93 million in SSBG funds, which support foster care, childcare, and other critical social services to prevent neglect, abuse, and exploitation of children and vulnerable adults.
On Jan. 8, James and the coalition filed their lawsuit. They assert that the Trump administration has provided no legitimate justification for freezing the funds. They point out that while the letters sent to states claim that the freeze is necessary to prevent “potential” fraud, the administration has failed to provide any evidence of this fraud. James and the coalition argue that the administration’s actions ignore the detailed legal requirements for imposing sanctions under these programs and violate the law and the Constitution. They say the administration’s actions also violate congressional power over spending and the constitutional principle of separation of powers.
After the temporary restraining order was issued, James said, “This decision is a critical victory for families whose lives have been upended by this administration’s cruelty. From childcare to shelter services for survivors of domestic violence, these funds provide resources that hundreds of thousands of New Yorkers depend on. This illegal funding freeze should have never happened.”
