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Department of Health and Human Services lifts $10 billion child care funding freeze on five states

By
FOX Local
U.S.
Updated July 14, 2026 1:14 PM EDT Published July 14, 2026 1:09 PM EDT
article

The Brief

    • The Department of Health and Human Services (HHS) has lifted a $10 ​billion freeze on child care subsidies and ‌social services funding for five states. 
    • HHS sent letters to California, Illinois, ​Colorado, New York and Minnesota informing them of the lift on the funding freeze that was implemented in January. 
    • The Trump administration initiated the freeze on the ​states ⁠over a range of issues including fraud claims, climate initiatives, diversity programs, and transgender policies. 

Court records show the Department of Health and Human Services (HHS) has lifted a $10 ​billion freeze on child care subsidies and ‌social services funding for California, Illinois, ​Colorado, New York and Minnesota after legal obstacles got in the way of ​the Trump administration's funding freeze attempts.

The states sued the Trump administration, two days after HHS announced the freeze. 

Dig deeper:

Letters were sent by the HHS Administration for Children and Families (ACF) to the states notifying them that they were ​rescinding letters sent in January that requested data and information requirements and that the mechanism that ‌the ⁠department used to enforce the temporary restricted funding drawdowns has been terminated. 


 

The backstory:

Earlier this year, a federal judge temporarily blocked the Trump administration from freezing access to more than $10 billion of federal funds for childcare and family assistance based on what it said were concerns about fraud.

Trump has threatened to freeze federal ​funding for universities, research institutions and ​states ⁠over a range of issues including fraud claims, climate initiatives, diversity programs, transgender policies and pro-Palestinian protests against U.S. ⁠ally Israel's ​assault on Gaza. Rights advocates say ​the Trump administration’s issues violate free speech and due process rights.

The Source: This article includes information from Reuters and the Department of Health and Human Services (HHS) Administration for Children and Families (ACF).  This story was reported from Orlando.

U.S.