The U.S. Department of Health and Human Services (HHS) has withdrawn its planned $10 billion freeze on child care subsidies and social services funding for five Democrat-led states after legal challenges blocked the move. Court records released on Monday confirmed that HHS rescinded its January 5 and January 6 directives to California, Illinois, Colorado, New York and Minnesota, along with all related data requests and reporting requirements.
The department also informed state officials that the mechanism used to enforce the temporary funding restrictions had been terminated. Earlier this year, a federal judge halted the funding freeze while a lawsuit filed by the affected states proceeds through the courts.
The funding dispute is part of a broader effort by President Donald Trump’s administration to withhold federal funds from universities, research institutions and states over issues including alleged fraud, climate policies, diversity initiatives, transgender-related policies and pro-Palestinian protests. Civil rights advocates argue that such measures infringe upon constitutional protections, including free speech and due process.
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