On Thursday, January 8, 2026, the State of California filed a fresh lawsuit against the Trump administration for freezing around $10 billion in federal funding for child care and family assistance.
The latest lawsuit comes after the Golden State sued the administration in December 2025 for withholding over $33 million in federal funding to terminate the grants for commercial vehicle safety programs in California.
According to The Los Angeles Times, the federal child care and family assistance funding was originally allocated to California, alongside Colorado, Illinois, Minnesota, and New York, all of which are led by Democrats.
However, California alone is reportedly facing an approximate loss of $5 billion in funding, including $1.4 billion for child-care programs.
NEW: California AG Rob Bonta announces he’s suing Trump Administration over frozen childcare/family assistance funds.
Alleging waste & fraud, Trump froze $10 Billion from Democratic states, half of the $$ was for California.
“This is Trump with no basis, no facts,” he said. pic.twitter.com/FbKB5YXSpW
— Ashley Zavala (@ZavalaA) January 9, 2026
Reports suggest that the funding was allocated for the Temporary Assistance for Needy Families program, the Social Services Block Grant program and the Child Care and Development Fund.
The Trump administration claimed that it decided to freeze the funds amid concerns of fraud, especially in light of Somali-run childcare centers facing accusations of fraud in Minnesota.
However, California’s lawsuit alleged that the freeze was based on unfounded claims and dubbed the move unconstitutional.
The suit also stated that the decision interferes with the Congress’ authority over federal spending and violates the laws that regulate federal aid programs.
All five of the blue states accused the Trump administration of failing to provide any “legitimate justification” for pausing the funds. They claimed that the administration did not provide any evidence of the potential fraud in the letters they sent regarding the freeze.
During a press conference, California Attorney General Rob Bonta said, “This is just the latest example of Trump’s willingness to throw vulnerable children, vulnerable families, and seniors under the bus if he thinks it will advance his vendetta against California and Democratic-led states.”
He added, “This is funding that California parents count on to get the safe and reliable child care they need so that they can go to work and provide for their families. It’s funding that helps families on the brink of homelessness keep roofs over their heads.”
NEW: It took a federal judge less than 24 hours to shut down Trump’s politically motivated child care cuts in California.
The feds went ghost-hunting for widespread “fraud” (with no evidence) — and ended up trying to rip child care and food from kids.
The court just said NO and… pic.twitter.com/qwcAPXczYC
— Governor Newsom Press Office (@GovPressOffice) January 10, 2026
In the wake of the funding freeze, New York City mayor Zohran Mamdani and Governor Kathy Hochul announced a new program to provide free childcare to children aged 2 years old in New York City.
Meanwhile, on Friday, January 8, 2026, US district judge Arun Subramanian ruled that the Trump administration cannot block funds which provide aid to children and their families in poverty in the five states, at least for the time being.
According to The Associated Press, he said the states successfully met a legal threshold “to protect the status quo” for at least two weeks amid ongoing arguments in court. New York Attorney General Letitia James, who is heading the lawsuit, said that ruling was a “critical victory for families whose lives have been upended by this administration’s cruelty.”
