OAKLAND — California Attorney General Rob Bonta today announced filing a motion for a preliminary injunction in an effort to continue blocking the Trump Administration from illegally freezing over $10 billion in federal funding for child care and family assistance programs, including an estimated $5 billion to California.
Alongside the attorneys general of New York, Colorado, Illinois, and Minnesota, Attorney General Bonta sued the U.S. Department of Health and Human Services (HHS) on January 8, 2026 over the funding freeze and its extraordinarily broad requests for data and documents related to the states’ use of the funding, including the personally identifiable information of millions of residents.
The attorneys general also sought a temporary restraining order. Less than 24 hours later, the U.S. District Court for the Southern District of New York granted the temporary restraining order, blocking the funding freeze and preventing the broad data and document requests from being enforced. The temporary restraining order remains in effect. In the motion for a preliminary injunction, Attorney General Bonta and his fellow attorneys general urge the court to continue blocking the funding freeze and requests for data and documents because they are unlawful many times over and the states would face irreparable harm without the court’s intervention.
“Last week, the U.S. District Court for the Southern District of New York blocked the Trump Administration from freezing $10 billion in funding for child care and other family assistance programs. We are now asking the court to extend that much-needed protection,” said Attorney General Bonta. “Vulnerable individuals and families would again bear the burden of the Trump Administration’s actions — and as we have consistently in the past, we are continuing to support those individuals and families.”
The funding at issue benefits millions of Californians — including children, families, seniors, and individuals with disabilities — through Temporary Assistance for Needy Families, the Child Care and Development Fund, and the Social Services Block Grant. According to HHS, the funding freeze was being imposed immediately and exclusively on the five Democratic-led states because of “serious concerns about widespread fraud and misuse of taxpayer dollars.” HHS has not provided any evidence at all to support those claims.
In their motion, the attorneys general argue that:
- The states are likely to prevail on their claims that the Trump Administration’s actions violate the Administrative Procedure Act, the Separation of Powers, and the U.S. Constitution’s Appropriations Clause and Spending Clause.
- The states will suffer irreparable harm if the Trump Administration is allowed to move forward with its funding freeze and requests for data and documents.
- Granting the preliminary injunction would serve the public interest.
What will the Feds do next?
Following the legal challenges led by California and four other states, the federal government’s next steps involve defending its funding freeze in court while simultaneously implementing nationwide reporting requirements through the Department of Health and Human Services (HHS).
Upcoming Legal Deadlines
The U.S. District Court for the Southern District of New York issued a Temporary Restraining Order (TRO) on January 9, 2026, which is set to automatically expire in 14 days (approximately January 23, 2026).
- Preliminary Injunction Hearing: The court must decide whether to grant the motion filed by Attorney General Rob Bonta on January 16, 2026, to extend the freeze’s suspension indefinitely while the lawsuit proceeds.
- Federal Defense: HHS is expected to provide evidence for its claims of “widespread fraud and misuse” to justify why the freeze was applied exclusively to five Democratic-led states (CA, NY, CO, IL, MN).
Immediate Federal Administrative Actions
While the total freeze is temporarily blocked for the five states, the Trump Administration is moving forward with other restrictive measures:
- “Defend the Spend” Activation: HHS has activated its “Defend the Spend” system nationwide. This requires states to submit justifications, receipts, or photo evidence before any federal payment is released for child care programs.
- New Verification Rules: All 50 states must now provide “additional levels of verification and administrative data” before receiving Child Care and Development Fund (CCDF) payments.
- Fraud Reporting Portal: HHS has launched a dedicated fraud reporting portal at childcare.gov to solicit reports of program misuse from the public.
Broader Funding Impacts
The administration is also targeting other programs and “sanctuary” jurisdictions:
- Grant Conditions: Federal officials are attempting to link funding for programs like the Social Services Block Grant (SSBG) to compliance with immigration and “program integrity” data requests.
- Rulemaking Changes: HHS released a proposed rule on January 5, 2025 (with a public comment period ending February 4, 2026) that aims to rescind previous requirements for prospective payments and family co-payment limits, potentially shifting more costs to states and families.