New York and four other states have jointly sued the Trump administration to restore $10 billion in federal funding it froze for child care and other programs in those Democratic-led states.
The case, led by New York Attorney General Letitia James and filed in federal District Court in Manhattan on Thursday, Jan. 8, argues that suspending the states’ funding for three programs violated both federal law and the U.S. Constitution. It calls the Republican-controlled federal government’s claim that it was searching for “potential” fraud a “pretext” to antagonize Democratic governors and their states.
“Defendants have provided no explanation for why targeting just these five states — each of which, as they have emphasized, has a Democratic governor — is a reasonable response to Defendants’ unsubstantiated assertions of nationwide fraud,” attorneys charged in the 41-page complaint.
In New York, the decision has put on hold $2.5 billion in annual funding for Temporary Assistance for Needy Families, which provides monthly cash aid to more than 200,000 low-income New Yorkers; $638 million for Child Care and Development Fund services; and $93 million for the Social Services Block Grant program.
The other states whose funds were frozen and joined New York in the suit are California, Illinois, Colorado and Minnesota. In announcing the freeze on Jan. 6, the U.S. Health and Human Services Department said, without elaborating, that it was acting on concerns about “widespread fraud” and benefits going improperly to people who aren’t U.S. citizens or lawful residents.
States decry ‘fishing expedition,’ ‘impossible’ demand
New York and the other states are arguing the administration has no power under federal law or the Constitution to unilaterally halt funding. In doing so, the suit contends, it is usurping congressional spending authority, and also ignoring the steps it must follow under federal law to probe potential “irregularities” in funding use.
The states say federal officials made an unreasonable demand for them to avoid a freeze: by turning over, within two weeks, all their information about millions of beneficiaries of the programs. The suit called that a “fishing expedition,” and an attempt to justify the freeze the government planned to do anyway.
“As Defendants know, that is an impossible task on an impossible timeline, offered only as pretext to maintain the freeze against Plaintiff States,” the lawsuit alleged.
What is the effect of the federal funding freeze?
The states warn that programs that serve vulnerable populations “will largely cease operations” if funds are cut. And even before that, agencies that oversee child care funding are scrambling to fill potential gaps and weighing unpleasant choices, such as raising family co-payments or extending waiting lists for care slots, according to the case.
The states also contend the freeze could damage how the programs are seen and curb participation as a result.
It “generates the public perception that state agencies have failed or engaged in wrongdoing, thereby damaging their reputation,” the attorneys wrote.
In response to the lawsuit, the Health and Human Services Department’s top lawyer posted on X that the department stands by its “action to defend American taxpayers” after identifying “serious concerns” about funding use in the five states.
“It’s unfortunate that these Attorney Generals from these Democrat-led states are less focused on reducing fraud and more focused on partisan political stunts,” wrote Mike Stuart, the department’s general counsel.
The freeze came shortly after a controversy erupted over social services fraud in Minnesota, one of the states whose funding was suspended.
In Westchester County, county officials say the frozen funding affects $126 million a year for social services in Westchester, endangering programs that help families find child care, avoid eviction and get housing after emergencies.
“This funding is used for a variety of extremely critical functions,” Westchester County Executive Ken Jenkins said in a statement. “And with the financial challenges Westchester County is already facing as a result of the policies of the Trump Administration, we have no way of backfilling any of these crucial programs if this funding is frozen.”
Chris McKenna covers government and politics for The Journal News and USA TODAY Network. Reach him at CMcKenna@usatodayco.com.
This article originally appeared on Rockland/Westchester Journal News: Letitia James leads lawsuit against Trump administration over frozen funding
Reporting by Chris McKenna, New York State Team / Rockland/Westchester Journal News
USA TODAY Network via Reuters Connect
