Court Blocks Funding Freeze, Restores Aid for Families and Providers

Federal Court Blocks Child Care Funding Freeze, Boosting Support for Families

In a significant legal decision, a federal court has intervened to prevent the Trump-Vance administration's effort to freeze over $10 billion dedicated to child care and family assistance. This preliminary injunction, issued in the case of AFSCME v. U.S. Department of Health and Human Services et al., reinstates crucial funding for families and businesses affected by the freeze.

The court's ruling temporarily halts the administration's broad actions that targeted programs in states like California, Colorado, Illinois, Minnesota, and New York. The decision ensures that important financial resources designed to provide safe and affordable child care continue to reach the communities in need.

In the past year, the administration has openly discussed terminating federal grants, particularly in "blue states." Officials from the Administration for Children and Families (ACF) have cited vague claims of "fraud" in the targeted Democratic-led states as grounds for these actions.

The lawsuit was initiated by various unions and small business entities, including the American Federation of State, County and Municipal Employees (AFSCME), Service Employees International Union (SEIU), Main Street Alliance, and AFSCME affiliates. Democracy Forward and Beeson, Tayer & Bodoine are representing the plaintiffs.

AFSCME President Lee Saunders commented, "The court’s decision to block the administration’s illegal funding freeze is a major victory for providers, families and the children they serve." This decision allows AFSCME members to continue delivering essential child care services without interruption.

Wendy Bobadilla, a family child care provider in Palmdale, California, also expressed relief, stating, "Child care providers and the families who count on us are breathing a sigh of relief after a federal court temporarily blocked Trump’s illegal funding freeze for child care." Bobadilla emphasized the critical role child care plays for working families, especially those reliant on lengthy commutes and essential jobs.

Richard Trent, Executive Director of Main Street Alliance, remarked, "Child care isn’t a partisan issue, it’s essential infrastructure for small businesses and working families." He welcomed the court's decision, noting the detrimental effects the freeze could have had on the workforce and small businesses.

Skye Perryman, President and CEO of Democracy Forward, criticized the administration's actions, saying, "The Trump-Vance administration attempted to withhold billions in funding Congress already approved, threatening child care providers, forcing parents out of work, and destabilizing local economies." The legal team argues that the funding freeze was both politically motivated and legally unsound.

The legal challenge asserts that the administration's January 6, 2026, funding freeze contravenes the Administrative Procedure Act and the First Amendment, claiming it was enacted without the necessary legal procedures and authority.

The legal representation from Democracy Forward includes Yenisey Rodríguez and several colleagues. The detailed complaint can be viewed here.