NY Sues Trump Administration Over $10B Freeze In Child Care Funding: What To Know

NEW YORK CITY — New York and four other states are suing the Trump administration after its move to cut off more than $10 billion in social services and child care funding, which could affect roughly 123,000 kids in New York City.

New York, along with California, Colorado, Illinois and Minnesota, filed the lawsuit in federal court in Manhattan. The five states are seeking to block the U.S. Department of Health and Human Services from withholding money from the Child Care Development Fund (CCDF), the Temporary Assistance for Needy Families (TANF) program, and the Social Services Block Grant program.

At least $7.35 billion in TANF money will be cut off from New York, California, Colorado, Illinois and Minnesota, according to the New York Post.

States will also lose $2.4 billion in CCDF funding. Another $869 million from the Social Services Block Grant is being held as well.

The Department of Health and Human Services in a statement said that the freeze in funding was done in part due to allegations of fraudulent child care programming in the five Democrat-run states.

In a post on social media on Thursday, Health and Human Services General Counsel Mike Stuart defended the agency's actions

“We identified serious concerns in these states that warranted immediate review and action,” he tweeted. "These same officials were complicit in this perpetuation of this fraud and allowing it to happen. Waste, fraud, and abuse will not be tolerated in the Trump administration."

New York receives over $2.4 billion in TANF funds, which provide direct cash assistance to over 200,000 families throughout the state to help families pay for housing, food, and other essentials.

“Once again, the most vulnerable families in our communities are bearing the brunt of this administration’s campaign of chaos and retribution,” Attorney General Letitia James said in a statement. “After jeopardizing food assistance and health care, this administration is now threatening to cut off childcare and other critical programs that parents depend on to provide for their children. As New Yorkers struggle with the rising cost of living, I will not allow this administration to play political games with the resources families need to help make ends meet.”

James and the coalition argue that the Trump administration has provided no legitimate justification for freezing these funds. While the letters sent to states claim that the freeze is necessary to prevent “potential” fraud, the administration has failed to provide any evidence of this fraud.

They also claim these sanctions "violate the law and the Constitution."