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

A federal judge ruled Friday that President Donald Trump’s administration must keep funds flowing to child care subsidies and other social service programs in five Democratic-controlled states — at least for now.

U.S. District Judge Vernon Broderick in New York, who was nominated by former President Barack Obama, granted the states’ request for a preliminary injunction and a stay against the administration to bar it from withholding the money while a lawsuit works its way through the courts.

The states affected include California, Colorado, Illinois, Minnesota and New York. The five states said they receive a total of more than $10 billion a year from the programs.

Two temporary rulings had been issued in January that blocked the federal government from holding back the funding, with the latest set to expire on Friday.

The programs in question are the Child Care and Development Fund, which subsidizes child care for 1.3 million children from low-income families nationally; the Temporary Assistance for Needy Families program, which provides cash assistance and job training; and the Social Services Block Grant, a smaller fund that provides money for a variety of programs.

When the U.S. Department of Health and Human Services announced it was withholding the money, it said there was “reason to believe” the states were granting benefits to people in the country illegally. It did not initially explain where the information came from. But in a court hearing, a federal government lawyer said it was largely in reaction to news reports about possible fraud.