A US federal judge has issued a temporary injunction, preventing the Trump administration from blocking billions of dollars in federal funding for child care and other vital social programmes in five states.
Immediate Relief Granted Amid "Operational Chaos"
On Friday, 10th January 2026, US District Judge Arun Subramanian ruled that the administration cannot halt the flow of money to California, Colorado, Illinois, Minnesota, and New York for at least the next 14 days. The states had urgently argued that a sudden funding freeze announced earlier in the week was causing immediate "operational chaos" for families and providers.
The states collectively receive more than $10 billion annually from the three affected grant programmes: the Child Care and Development Fund, the Temporary Assistance for Needy Families scheme, and the Social Services Block Grant.
Administration's Claims Versus States' Defence
The US Department of Health and Human Services had stated it was pausing the funds because it had "reason to believe" the states were providing benefits to people residing in the country illegally. However, it did not provide concrete evidence to support this claim or explain why it specifically targeted these five states.
In response, lawyers for the states contended the move was unconstitutional and politically motivated, designed to target political adversaries rather than combat fraud. Jessica Ranucci, a lawyer for New York, warned during a telephone hearing that delays were already occurring and would create immediate uncertainty for vulnerable families.
Legal Battle Paused, For Now
Judge Subramanian, who was nominated by former President Joe Biden, did not rule on the ultimate legality of the funding freeze. Instead, he found the states had met the necessary legal threshold to "protect the status quo" while arguments are fully presented in court.
The administration had demanded extensive data from the states, including names and Social Security numbers of benefit recipients since 2022—a request the states argue is overreaching. For now, the crucial funding pipeline remains open, offering a reprieve to the millions who depend on these essential services.
