January 8, 2026

NEW YORK - New York Attorney General Letitia James today led a coalition of four other attorneys general in suing the Trump administration to stop the illegal withholding of over $10 billion in critical funds to their states that help ensure low-income families can afford childcare, housing, food, and more. On January 5 and 6, the administration sent letters to New York, California, Colorado, Illinois, and Minnesota announcing that the Administration for Children and Families (ACF) was freezing funding for three critical programs: the Child Care and Development Fund (CCDF); Temporary Assistance for Needy Families (TANF); and the Social Services Block Grant (SSBG). Attorney General James and the coalition argue that freezing these funds will immediately jeopardize some of the most important anti-poverty programs in the states, putting vulnerable families at risk. Attorney General James and the coalition are seeking a court order declaring the funding freeze unlawful and preventing the administration from implementing it.

"Once again, the most vulnerable families in our communities are bearing the brunt of this administration's campaign of chaos and retribution," said Attorney General James. "After jeopardizing food assistance and health care, this administration is now threatening to cut off childcare and other critical programs that parents depend on to provide for their children. As New Yorkers struggle with the rising cost of living, I will not allow this administration to play political games with the resources families need to help make ends meet."

In New York, ACF funds provide essential support for hundreds of thousands of families every year. New York receives over $2.4 billion in TANF funds, which provide direct cash assistance to over 200,000 families throughout the state to help families pay for housing, food, and other essentials. For Grant Year 2025, New York received $638 million in CCDF funds, which provide childcare for low-income families. New York also receives $93 million in SSBG funds, which support foster care, childcare, and other critical social services to prevent neglect, abuse, and exploitation of children and vulnerable adults.

If implemented, the funding freeze would be devastating for families in the coalition's states. Families would lose access to reliable childcare, forcing parents and caregivers into an impossible choice of either missing work or leaving children in a potentially unsafe environment. Childcare providers would lose essential funding, and even children who do not receive ACF-funded care could lose access if facilities are forced to reduce staff or shut down. Employers would lose valuable workers, hurting states' economies, and families would lose critical cash assistance to help them afford essentials like gas, groceries, and rent.

Attorney General James and the coalition assert that the administration has provided no legitimate justification for freezing these funds. While the letters sent to states claim that the freeze is necessary to prevent "potential" fraud, the administration has failed to provide any evidence of this fraud. Attorney General James and the coalition argue that the administration's actions - which ignore the detailed legal requirements for imposing sanctions under these programs - violate the law and the Constitution. The administration's actions also ignore the laws and regulations governing these ACF programs and violate Congress's power over spending and the constitutional principle of separation of powers. Attorney General James and the coalition are seeking a court order declaring the funding freeze illegal and preventing it from being implemented.

Joining Attorney General James in filing this lawsuit are the attorneys general of California, Colorado, Illinois, and Minnesota.