On January 6, 2026, the Department of Health and Human Services (HHS) froze $10 billion in funding for California, Colorado, Illinois, Minnesota and New York. This came in response to “serious concerns about widespread fraud and misuse of taxpayer dollars in state-administered programs.”
The freeze affected the Child Care and Development Fund (CCDF), Temporary Assistance for Needy Families (TANF), and the Social Services Block Grant (SSBG). All of these organizations are HHS-administered programs that provide vital services to many families in need. HHS alleges that this funding freeze is to protect American families in need. However, HHS is actively choosing to punish these specific Democrat-run states and their efforts to protect those in need.
While the funds remain frozen pending review, HHS intends to require these states to provide receipts and other documentation to verify that disbursements comply with federal regulations.
Gov. Kathy Hochul of New York expressed her dissatisfaction with HHS’s targeted attempt to harm these states. Hochul called these actions a “frontal assault on children in this nation” on behalf of the Trump administration, which has made children “pawns in a fight.”
Many governors, including Minnesota’s Tim Walz, have also affirmed their intent to defend citizens from these egregious attacks. These five states are seeking legal action, claiming that the funding freeze is “illegal and unconstitutional.” Yet one thing remains very clear: HHS is out of touch with the reality that affects low-income families across the nation.
Experts have said that freezing funds means that some families won’t be able to access education or get their kids to childcare programs. These resources help families fulfill their most basic needs, such as access to food and nutrition. Yet HHS’s approach to “protecting” the integrity of these programs, it only punishes the people who rely on this critical aid and exploits partisan divisions.
For now, U.S. District Judge Arun Subramanian has granted the states’ request for a 14-day temporary restraining order, halting the freeze until the court can decide on a longer-term order.