Judge Blocks Trump’s $10B Welfare Freeze

Judge Blocks Trump’s $10B Welfare Freeze

A federal judge has put a temporary stop to the Trump administration’s plan to freeze roughly $10 billion in federal welfare funding for five states.

The decision came as U.S. District Judge Arun Subramanian issued a temporary restraining order, telling federal officials the money must continue to flow while both sides prepare fuller legal arguments. The pause is short — about two weeks — but it gives the courts time to sort the legal fight out.

The funding in question covers three major programs: child care assistance (Child Care Development Fund), Temporary Assistance for Needy Families (TANF), and Social Services Block Grants. The funds were targeted at California, Colorado, New York, Minnesota and Illinois.

The administration notified those states that it planned to withhold the money, citing alleged widespread fraud and mismanagement in state-run programs. Along with the funding action, federal officials requested detailed records about how states run those programs.

State officials pushed back quickly. California Attorney General Rob Bonta and the attorneys general from the other affected states filed a lawsuit and asked the court for an emergency injunction to stop the freeze. The judge granted that request for now.

The TRO requires the government to keep sending funds while the legal process moves forward. It gives both sides time to file full briefs and present arguments about whether the freeze should be allowed to stand.

This case raises a few big questions: how much authority the federal government has to withhold targeted funds, how states must prove proper program administration, and what level of evidence is needed to support claims of fraud. Expect more filings and likely more controversy before the matter is resolved.

For now, the five states will keep receiving the federal support they rely on, at least until the court decides the next steps.

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