California and four Democratic-led states — New York, Colorado, Minnesota and Illinois — will sue the Trump administration over an HHS freeze of roughly $10 billion in welfare funding. The freeze includes $7 billion from TANF, $2.4 billion from the Child Care and Development Fund and $870 million in children's social services grants. State leaders say the administration has not presented evidence for allegations of widespread fraud and call the move unlawful executive overreach. The lawsuit seeks to restore funds and block further withholdings.
California and Four Democratic-Led States Sue Over Roughly $10 Billion Welfare Funding Freeze
SACRAMENTO — California and four other Democratic-led states announced plans to sue the Trump administration over a roughly $10 billion freeze on federal welfare funding imposed this week by the Department of Health and Human Services (HHS).
What Happened
California Attorney General Rob Bonta told POLITICO that he and the attorneys general of New York, Colorado, Minnesota and Illinois will file suit to challenge the funding freeze. Federal officials say the move responds to alleged widespread fraud and waste in state welfare programs; the states say those allegations have not been accompanied by supporting evidence.
“They literally just targeted Democratic states because they're Democrat,” Bonta said. “They have not one shred, not one shred of evidence, and to turn off the funding with no justification. It's unlawful and it's also petty.”
HHS notified the states that it plans to withhold about $7 billion from the Temporary Assistance for Needy Families (TANF) program, $2.4 billion from the Child Care and Development Fund and $870 million in social services grants for children — roughly $10 billion in all.
Political and Legal Context
Gov. Gavin Newsom, speaking in his State of the State address, framed the dispute as part of a broader effort to defend Californians from executive overreach. He noted California has repeatedly turned to the courts in disputes with the administration.
Beyond the freeze, HHS has also requested detailed data from the five states about how they administer welfare programs. Bonta criticized that sequence, saying the administration acted first and asked questions later.
“They decided to take the action first, and then start asking questions after. That's not how justice works. That's not how the law works. That's not how the Constitution works, and we're going to have to slap them down again.”
The lawsuit is expected to seek restoration of the frozen funds and a court order preventing HHS from withholding additional payments while the challenge proceeds. The case is likely to touch on questions about federal oversight of state-administered welfare programs and the limits of executive authority.
What’s Next: Attorneys general said they will file the complaint this week. A court decision could have immediate effects on state welfare budgets and broader implications for federal-state relations.
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