Feds can’t withhold social service funds from 5 Democratic states amid fraud claims, judge rules

Associated Press (AP)EN 3 min read 100% complete by By GEOFF MULVIHILLFebruary 7, 2026 at 08:23 AM

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A federal judge in New York ruled that the Trump administration cannot withhold social service funds from five Democratic-led states: California, Colorado, Illinois, Minnesota, and New York. The ruling grants a preliminary injunction requested by the states, preventing the federal government from withholding funds while a lawsuit proceeds through the courts. The states receive over $10 billion annually from programs like the Child Care and Development Fund, Temporary Assistance for Needy Families, and the Social Services Block Grant. The lawsuit was filed in January after the Department of Health and Human Services announced it was withholding the money, claiming there was reason to believe the states were granting benefits to undocumented individuals. The judge's decision ensures the continued flow of funds to these programs, which support childcare and other social services for vulnerable families.

Key Entities & Roles

Key Player Opposition Context

Barack Obama 50% Rob Bonta 50% Illinois 60% U.S. Department of Health and Human Services 60% Minnesota 60% Letitia James 60% Colorado 60% California ×270% Vernon Broderick 70% New York ×370% United States ×280% Donald Trump ×280%

Keywords

social service funds 90% child care subsidies 70% federal funding 70% temporary assistance for needy families 60% preliminary injunction 60% democratic states 60% low-income families 50% social services block grant 50% fraud claims 40%

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social service funds child care subsidies federal funding temporary assistance for needy families preliminary injunction democratic states low-income families social services block grant fraud claims

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