Democrat-Led States Sue Trump Admin for 'Unlawful' Federal Childcare Funding Freeze
"It is especially pathetic that, once again, his administration's actions are inflicting harm on the most vulnerable among us," said California Attorney General Rob Bonta.
The Democratic attorneys general of California, Colorado, Illinois, Minnesota, and New York on Thursday sued President Donald Trump's administration over its "extraordinary and cruel action to immediately freeze $10 billion in federal funds that plaintiff states use to help provide services and cash assistance that allow families to access food, safe housing, and childcare."
Amid a childcare funding fraud scandal in Minnesota, the US Department of Health and Human Services (HHS) on Tuesday announced the halt on a total of around $7.35 billion for Temporary Assistance for Needy Families, $2.4 billion for the Child Care and Development Fund, and $870 million for social services grants for those five Democrat-led states.
The states' complaint, filed in the Southern District of New York, says that the department and HHS Secretary Robert F. Kennedy Jr., along with the Administration for Children and Families and its leader, Alex Adams, "have no statutory or constitutional authority to do this. Nor do they have any justification for this action beyond a desire to punish plaintiff states for their political leadership. The action is thus clearly unlawful many times over."
Minnesota Attorney General Keith Ellison argued that "withholding all funding for these vital programs will not help fight fraud as purported, and will instead shred the finances of Minnesotans already struggling to get by. Without childcare assistance, poor families will be forced to choose between parents going to work and paying their bills or staying home to provide childcare during their working hours. And it's not just families who benefit from these programs that will suffer."
"Minnesota's entire childcare system will be put under immense strain if childcare centers lose the funding provided by these programs, which could force centers to lay off staff or close their doors entirely," Ellison warned. "This extreme outcome is not just cruel, it's also another example of the Trump administration going off the rails and deciding not to follow the processes and mechanisms Congress put in place to manage federal grants in a responsible way."
"Federal laws and regulations give a roadmap for reasonable, legal ways to audit funding programs and address areas of potential noncompliance, but this 'funding freeze' takes a chainsaw to the entire system without regard to who it hurts," the former congressman stressed. "I will not allow that to happen, so today I am filing a lawsuit to halt these cuts and protect families across Minnesota from Trump's heartless attack on low-income families."
BREAKING--We have filed our 50th lawsuit against the Trump Administration, challenging its illegal and harmful actions. It addresses the withholding of funds for the neediest among us, including access to child care. I will always fight for Colorado. www.axios.com/local/denver...
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— Phil Weiser (@philweiser.bsky.social) January 9, 2026 at 11:18 AM
White House Press Secretary Karoline Leavitt confirmed Wednesday that at least one other targeted state is being investigated. She said that "the president has directed all agencies across the board to look at federal spending programs in not just Minnesota, but also in the state of California to identify fraud and to prosecute to the fullest extent of the law all those who have committed it."
After the federal suit was filed, HHS General Counsel Mike Stuart said that the department "stands by its decision to take this action to defend American taxpayers" and "it's unfortunate that these attorney generals from these Democrat-led states are less focused on reducing fraud and more focused on partisan political stunts."
Meanwhile, California Attorney General Rob Bonta—who has now taken the Trump administration to court over 50 times—declared that "the American people are sick and tired of President Trump's lawlessness, lies, and misinformation campaigns."
"It is especially pathetic that, once again, his administration's actions are inflicting harm on the most vulnerable among us," he said. "As a society, we are rightly judged by how we treat our neighbors in need, and this is a shameful way to treat them."
Illinois Attorney General Kwame Raoul similarly ripped the funding freeze as not only "unlawful" but "particularly callous," while New York's Letitia James also highlighted that "once again, the most vulnerable families in our communities are bearing the brunt of this administration’s campaign of chaos and retribution."
"After jeopardizing food assistance and healthcare, this administration is now threatening to cut off childcare and other critical programs that parents depend on to provide for their children," James continued. "As New Yorkers struggle with the rising cost of living, I will not allow this administration to play political games with the resources families need to help make ends meet.”
Colorado Attorney General Phil Weiser emphasized that "the US Constitution does not permit the president to single out states for punishment based on their exercise of core sovereign powers," and vowed that "the administration cannot punish Colorado into submission."
In addition to being blasted by leaders from the five targeted states, the funding freeze has been condemned by a growing number of elected officials across the country. US Senate Health, Education, Labor, and Pensions Committee Ranking Member Bernie Sanders (I-Vt.) noted Friday that the move could impact nearly 340,000 children.
"At a time when our childcare system is already struggling, this will be a disaster for working parents and their kids," Sanders said. "This illegal order must be rescinded."
