Trump freezes billions in family aid and five states rush to court, but one accusation is driving the entire fight

According to The Hill, five state attorneys general have sued the Trump administration after it froze roughly $10 billion designated for child care and family assistance programs. The lawsuit was filed by Democratic-led states California, New York, Minnesota, Illinois, and Colorado, which argue the move is unlawful and politically motivated.

The Department of Health and Human Services announced the freeze earlier this week, citing “serious concerns about widespread fraud and misuse of taxpayer dollars” in state-administered programs. The affected states dispute that claim, saying the administration has provided no evidence to justify the action.

The funding pause impacts three major social safety net programs relied on by low-income families. About $7.35 billion was frozen from Temporary Assistance for Needy Families, nearly $2.4 billion from the Child Care and Development Fund, and $869 million from the Social Services Block Grant.

The fraud claim driving the legal fight

The attorneys general leading the lawsuit say the administration exceeded its authority by freezing funds without congressional approval. This is echoing broader concerns about how far the president believes his power extends, including claims that international law does not constrain his actions.

New York Attorney General Letitia James said the move immediately threatens vulnerable families by disrupting core anti-poverty programs across the affected states. She accused the administration of targeting essential services under the guise of fraud enforcement, arguing that families are again being placed at risk.

California Attorney General Rob Bonta also rejected the fraud rationale, saying HHS has failed to substantiate its allegations. He criticized the administration’s broader approach, which critics say mirrors other recent decisions where long-standing policy norms about Taiwan and China were discarded in favor of unilateral executive action.

The administration’s fraud focus follows heightened scrutiny after a large welfare fraud scandal in Minnesota. That case prompted broader Republican concerns about federal spending oversight, particularly in Democratic-led states.

White House officials have confirmed the review is not limited to Minnesota. Press secretary Karoline Leavitt said the president directed agencies to examine federal programs in California to identify and prosecute fraud where found.

California Governor Gavin Newsom pushed back against those claims, accusing the administration of inflating fraud allegations for political purposes. He argued the White House should instead focus on approving federal aid tied to rebuilding efforts following major wildfires in Los Angeles.

The attorneys general say they are prepared for a prolonged court battle over the freeze and the administration’s authority to impose it. Bonta said the lawsuit reflects a broader pattern of legal challenges to the administration’s actions, adding that the states intend to keep pressing their case in court.