A federal judge in New York granted a preliminary injunction and stay, ordered the Trump administration to continue funding for child care subsidies and related social services in five Democratic-controlled states while the lawsuit proceeds.

The ruling temporarily preserves funding to prevent disruption to services relied upon by hundreds of thousands of families and providers in those states.

The injunction blocks the administration’s $10 billion freeze on child care and family planning funding to the five blue states, including Illinois.

The freeze, announced in January, was justified by fraud concerns, though the administration provided no details or proof.

In addition, the administration has imposed heightened information requirements on all states for the child care program, amid ongoing scrutiny of Minnesota over fraud concerns and Somali community involvement.

Key figures cited include New York Attorney General Letitia James, who emphasized the impact on vulnerable families, with the court filing noting broader implications across multiple states amid fraud concerns.

The government initially justified withholding funds by alleging benefits went to people in the country illegally, later saying it sought more information and beneficiary details rather than an outright freeze.

Federal officials cited fraud concerns and a need for more information from states about beneficiaries and fund usage, but framed the action at times as a broad freeze, leading to legal challenges.

Officials’ explanations have shifted over time from a fraud trigger to a request for verification before funds can be released.

Advocates warn that cutting subsidies could drive day-care closures or staff layoffs, harming low-income families’ ability to work and access essential services.

The warnings emphasize potential disruptions to providers and work continuity for those relying on subsidies, risking layoffs and closures in day cares.

Advocates warn, specifically, that withholding subsidies could disproportionately affect low-income families and workers who depend on these services.