Blue States Sue US Over Child Care Funding Cuts: States of Play

Jan. 9, 2026, 7:31 PM UTC

FIVE DEMOCRATIC-LED STATES are suing the US government to restore $10 billion in aid for programs that serve vulnerable children and families that was slashed amid allegations of nationwide fraud.

  • The administration announced the funding freeze Tuesday, escalating a conflict that has grown over accusations by the Trump’s administration that Minnesota Gov. Tim Walz (D) and other state officials allowed massive fraud in programs supporting child care — a claim the officials deny.
  • In their lawsuit, New York, California, Minnesota, Illinois, and Colorado accused the administration of freezing the assistance to punish them “for their political leadership.”
  • The administration has ...

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