Trump suffers setback in bid to cut off $10 billion in child care and social services
U.S. President Donald Trump gestures upon returning to the White House from Dover Air Force Base in Washington, D.C., December 17, 2025. REUTERS/Aaron Schwartz

A federal judge threw a wrench in the Trump administration's plan Friday to cut off billions of dollars in funding for child care and social services in blue cities.

Judge Arun Subramanian ordered the administration to release the money while a legal battle plays out over the $10 billion freeze, The New York Times reported Friday evening. The move came less than 24 hours after New York, California, Minnesota, Illinois, and Colorado sued over the move.

The blocked funds included roughly $7.3 billion from the Temporary Assistance for Needy Families program and nearly $2.4 billion from the Child Care and Development Fund, plus smaller grants.

“The importance of these programs cannot be overstated — they provide cash assistance and fund services to help low-income and vulnerable families,” the lawsuit said. “Without these programs, there will be immediate and devastating impacts.”

The Trump administration had claimed the freeze was due to fraud allegations in Minnesota, though no evidence of similar schemes emerged in the other four targeted states.

The five states warned that hundreds of thousands of families could lose critical support overnight. Parents could lose jobs due to child care lapses, then become ineligible for food stamps requiring employment.

"This cannot wait a week," argued Jessica Ranucci from New York's attorney general office during a Friday hearing.

“It will create a tremendous burden on the state administrative systems and also harms with the ripple effects within the community," she added.