Federal Freeze on Child Care and Family Assistance Hits Five Democratic‑Led States, Including New York

UPDATE: A federal district court in New York issued a two week temporary restraining order (TRO) Friday, blocking a Trump administration plan to withhold family assistance funds from five states.

In a statement, Ulster County Executive Jen Metzger said of the decision by New York District Judge Arun Subramanian blocking Trump funding freeze for social services:

“I applaud Judge Subramanian’s decision requiring the Trump Administration to release vital federal funding for social services that were halted last week without any legitimate justification. These essential funds for County-administered programs will continue to flow while New York and other targeted states challenge the legal basis for the Trump administration’s action. Ulster County receives close to $15 million in funding for these programs, which support our residents with everything from emergency housing, food, and utility assistance to child and adult preventive and protective services, domestic violence programs, and senior services. Halting federal support for such life-saving assistance is an act of cruelty.”

The U.S. Department of Health and Human Services has frozen access to more than $10 billion in federal child care and family assistance funds for five states — California, Colorado, Illinois, Minnesota and New York — all governed by Democrats, citing concerns about widespread fraud or misuse of taxpayer dollars.

The freeze affects key programs that support low‑income families, including the Child Care and Development Fund (CCDF), Temporary Assistance for Needy Families (TANF and the Social Services Block Grant (SSBG), potentially jeopardizing services for children, seniors and working families across millions of households.

“Families who rely on child care and family assistance programs deserve confidence that these resources are used lawfully and for their intended purpose,” said HHS Deputy Secretary Jim O’Neill in the agency’s announcement.

But Democratic leaders from the affected states have sharply criticized the move as politically motivated, saying it targets “blue states” and threatens critical support for vulnerable residents.

What the Freeze Means

Under the HHS action, states must now submit detailed documentation before any federal payments are released. The freeze encompasses:

Nearly $2.4 billion for CCDF child care support

About $7.35 billion for TANF, which provides cash and job assistance

Roughly $869 million for SSBG social services grants

Federal officials say the step responds to concerns that benefits may have been improperly provided to ineligible recipients, including individuals not authorized under federal law.

Local Reaction in Sullivan and Ulster County

Sullivan County Legislature Chair Nadia Rajsz said in a statement, “These actions are a travesty and will harm our most vulnerable citizens. As just one example, what will happen to families when parents have to stay home to care for their children rather than going to work to put food on the table? Sullivan County has long supported aggressively investigating and prosecuting those who try to cheat taxpayers, as evidenced by our active Welfare Fraud Task Force. But like we do every day, the Federal government should be working to identify fraudsters, not be removing critically needed funding from thousands of innocent children and families. This is clearly a political game of retribution, not a sincere effort to root out fraud and abuse.”

Ulster County Executive Jen Metzger voiced strong opposition, saying the freeze appeared driven more by politics than evidence.

“The freeze announced by the Trump administration has all the appearance of being politically motivated since it only targets Democratic‑led states. Ironically, most of New York’s counties, which administer these funds for their communities, are Republican‑led and will be just as hurt by a funding freeze. If there is any fraud anywhere in the administration of these programs in New York, show the evidence so that it can be addressed, but don’t punish families, seniors, and children who desperately need these supportive programs.”

Metzger highlighted the importance of these funds to local services:

“Ulster County receives tens of millions of dollars in funding for these programs, which support our residents with everything from emergency housing, food, and utility assistance to child and adult preventive and protective services, domestic violence programs, and senior services.”

She also noted ongoing uncertainty about federal guidance to local governments.

“At this time, state officials, to my knowledge, still have not received any of the necessary details from the federal government about this announced freeze to provide guidance to county governments, but I want to be clear that Ulster County will not let people go without emergency shelter or other basic needs. We will continue to protect our residents to the best of our abilities.”

Broader Political Backdrop
Democratic governors and lawmakers in the affected states have condemned the freeze, calling it a punitive tactic that could undermine essential social safety nets and harm children, families and providers at a time of rising costs and ongoing shortages in child care services.

Gov. Kathy Hochul said that New York is prepared to take the administration to court, as Democratic-led states have done scores of times now.

“We’ll fight this with every fiber of our being, because our kids should not be political pawns in a fight that Donald Trump seems to have with blue state governors,” she said.

New York Senator Kirsten Gillibrand said, “They are stealing our New York dollars. This funding freeze is leaving our most vulnerable families and child care providers in a devastating limbo, not knowing if or when they will lose the assistance that they rely on to send their children to day care and keep their businesses running. The administration is using American families as pawns.”

Federal officials maintain the freeze will remain in place until they determine that respective states are complying with federal requirements.

Image: Children watch television at ABC Learning Center in Minneapolis, MN, on Wednesday, Dec. 31, 2025. (AP Photo/Mark Vancleave)

Note: this story was updated on January 8 with reaction from Sullivan County Legislature Chair Nadia Rajsz and New York Senator Kirsten Gillibrand.