Five Democratic States Sue Trump Administration Over $10bn Childcare Funding Freeze. Five Democratic-led US states have filed a lawsuit against the Trump administration, challenging a decision to freeze more than $10 billion in federal childcare and family assistance funding. California, Colorado, Illinois, Minnesota and New York argue the move is unlawful and politically motivated. The freeze was announced by the Department of Health and Human Services, which cited concerns over alleged fraud and misuse of welfare funds, including claims that benefits may have gone to non-citizens. The blocked money includes billions for low-income families through the Temporary Assistance for Needy Families program, as well as funds aimed at making childcare more affordable for working parents. State leaders strongly rejected the allegations. New York's attorney general says the administration failed to provide evidence and is overstepping Congress's authority over federal spending. The lawsuit asks the court to restore access to the funds, warning the freeze could harm millions of vulnerable families across the country.