The federal court temporarily blocked HHS from pausing about $10.27 billion in social services funding to California, New York, Minnesota, Illinois and Colorado, issuing a 14-day restraining order while litigation proceeds. HHS says the freeze targets alleged widespread fraud—including large losses uncovered in Minnesota—while the states call the move illegal and politically motivated. The funds at stake include roughly $7 billion from TANF, $2.4 billion from the Child Care and Development Fund and about $870 million in other grants. The court will decide whether to extend the order after further hearings.
Judge Grants 14-Day Restraining Order Blocking HHS From Freezing Nearly $10 Billion In Social Services Funding
A federal judge has temporarily barred the U.S. Department of Health and Human Services (HHS) from suspending roughly $10 billion in social services funding to five states, ruling that the agency cannot immediately cut payments while the court reviews the states' legal challenge.
What the Ruling Means
U.S. District Judge Arun Subramanian on Friday granted a 14-day temporary restraining order at the request of California, New York, Minnesota, Illinois and Colorado. The order prevents HHS from implementing its planned freeze while the court considers whether to extend the injunction.
Scope of the Funding At Issue
HHS had announced plans earlier this week to pause approximately $10.27 billion in federal social services support to the five states, including about $7 billion from the Temporary Assistance for Needy Families (TANF) program, $2.4 billion from the Child Care and Development Fund, and roughly $870 million in other social services grants.
Administration's Position
HHS and the administration say the funding pause is necessary to address alleged widespread fraud in programs administered by the affected states. Officials cited disclosures that hundreds of millions of dollars were improperly obtained from child nutrition, housing and autism assistance programs in Minnesota as part of the broader concern.
HHS Secretary Robert F. Kennedy Jr. told CBS News that the affected states "are not affected because they're Democratic," but because they allegedly "refuse to cooperate with developing plans that would end the fraud." He said states were warned and that the agency sought workable plans to prevent ongoing losses.
States' Challenge
In a lawsuit filed in federal court in Manhattan, the five states argue the funding freeze is illegal and unconstitutional. They contend the administration's stated focus on fraud is a "pretext" aimed at punishing politically disfavored states and that HHS cannot cut off funds based on mere allegations without providing states notice, a chance to respond and an opportunity to appeal.
"There is no justification for this attempted funding freeze," Illinois Attorney General Kwame Raoul said Friday. "It is a cruel and illegal attempt by the administration to play politics with the lives of children and low-income families."
Next Steps
The temporary restraining order lasts 14 days while the court considers whether to issue a preliminary injunction that would extend the protection during litigation. Both sides may present additional evidence and legal arguments; further hearings are likely before the judge decides whether the freeze can proceed.
Context and Reaction
CBS News has reached out to the White House and HHS for further comment. The dispute raises broader questions about federal oversight of state-administered programs, the appropriate process for responding to suspected fraud, and the balance between enforcement and maintaining services for vulnerable populations.
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