Judge Temporarily Blocks Trump’s $5B Child Care Funding Freeze to California

A judge on Friday temporarily blocked the Trump administration from freezing more than $10 billion in child care and welfare funding for California and four other states led by Democratic governors.

The decision came a day after the states sued to stop the administration’s decision to freeze three funds — the Child Care and Development Fund, Temporary Assistance for Needy Families and the Social Services Block Grant — which provide cash assistance, child care subsidies and other social services to lower-income households. About $5 billion of those funds go to California.

Attorney General Rob Bonta, along with the top lawyers for New York, Minnesota, Illinois and Colorado argued that freezing the money would jeopardize some of their states’ most critical anti-poverty programs and that they were already experiencing delays in accessing it.

The federal Administration for Children and Families told the states on Tuesday it would restrict access to these funds because it “has reason to believe” the money was fraudulently going to noncitizens. The department gave the states two weeks to submit documentation, like attendance records at child care programs, to justify their spending before they can access the money. 

The funding freeze stems from a video from a conservative influencer claiming without evidence that child care centers operated by Somali residents in Minnesota committed fraud. The allegation prompted the ACF to suggest tightening rules around how federal child care funds get distributed, like paying child care programs based on attendance instead of enrollment.      

“This is about nothing more than a president seeking to punish democratic-led states that have taken a stand against his bluster, his bullying, and his blatant and brazen lawlessness,” Bonta said Friday. “This is about a president and administration crying fraud without even attempting to provide any proof to back up the claims.”

The temporary restraining order also blocks the Trump administration’s request for documents. 

California uses the funds to provide temporary cash assistance to families in need, and to support foster care and child welfare services. The state also uses the Child Care and Development fund to provide subsidized child care for lower-income families.