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New York blocks $10B family aid freeze

New York secured a court order stopping a federal move that would have frozen more than $10 billion in funding for childcare and assistance programs used by families across the state.

The ruling prevents the Trump administration from cutting off money that supports childcare, low-income families, and other vulnerable New Yorkers, allowing the state to continue accessing the funds.


The freeze targeted three major programs: the Child Care and Development Fund, Temporary Assistance for Needy Families, and the Social Services Block Grant. Together, those programs help families pay for childcare, basic necessities, and essential social services.

State officials warned that halting the funds would have caused immediate disruption for hundreds of thousands of New Yorkers who rely on the programs to work, care for their children, and stay financially stable.

The case stems from a lawsuit filed in January, when New York and four other states challenged the administration’s attempt to freeze the funding. A federal judge initially blocked the move with a temporary restraining order.

The court has now gone further, issuing a preliminary injunction that keeps the freeze in place while the case moves forward. The order allows states to continue drawing down funds for the affected programs.

New York Attorney General Letitia James said the decision prevents serious harm to families and communities that depend on the aid.

Attorneys general from California, Colorado, Illinois, and Minnesota joined New York in the lawsuit.

The ruling ensures that childcare centers, family assistance programs, and social service providers can continue operating without interruption for now.