When the Department of Health and Human Services announced Tuesday it was freezing billions in welfare funding for "further review," five states decided they weren't going to wait around for an explanation. California, Colorado, Illinois, Minnesota, and New York have now sued the Trump administration over the suspension of more than $10 billion in federal aid.
Where's The Evidence?
The states aren't just annoyed—they're arguing the freeze is legally questionable. According to their lawsuit, HHS failed to provide a legitimate reason for halting the funds, offered no evidence backing up concerns about fraud, and essentially trampled over Congress's constitutional authority to control federal spending. The administration says it's worried about fraudulent payments going to non-citizens, but the states say that's not enough to justify pulling billions in assistance.
Three Programs Hit by the Freeze
The suspended funding spans three critical programs: the Child Care Development Fund, Temporary Assistance for Needy Families, and the Social Services Block Grant program. To justify the decision, the administration pointed to a 2019 HHS Office of Inspector General report that found New York City had improperly billed the federal government more than $24.7 million for child care subsidies. That's a real issue, sure—but it's also from six years ago and involves one city.