Key facts
- The Department of Health and Human Services rescinded a $10 billion freeze on child care subsidies and social services funding for five Democratic-led states.
- The states affected are California, Illinois, Colorado, New York, and Minnesota.
- Legal obstacles prevented the freeze attempts, with a federal judge having blocked the move earlier in the year.
- The department terminated the mechanism used to enforce the temporary restricted drawdowns.
The Trump administration's Department of Health and Human Services has rescinded a $10 billion freeze on child care subsidies and social services funding for five states governed by Democrats. The move comes after legal obstacles prevented the freeze attempts.
The department communicated to officials in California, Illinois, Colorado, New York, and Minnesota that it was rescinding its January 5 and January 6 letters, including all associated data requests. A legal filing on Monday revealed the communication, stating that the mechanism used to enforce the temporary restricted drawdowns has been terminated.
Earlier this year, a federal judge had blocked the freeze for the duration of a lawsuit brought by the states against the administration's action. President Donald Trump had previously threatened to freeze federal funding for various institutions and states over issues including fraud claims, climate initiatives, diversity programs, transgender policies, and responses to pro-Palestinian protests.