Attorneys general from five Democratic-led US states filed a lawsuit Thursday against the Trump administration, accusing it of an unconstitutional abuse of power by freezing approximately $10 billion in federal funding for programs aiding low-income families and children.
California, Colorado, Illinois, Minnesota, and New York argued that the Department of Health and Human Services (HHS) overstepped by freezing congressionally approved funds for child care subsidies, cash assistance, job training for low-income families, and social services grants, ABC News reported.
The lawsuit, filed in the US District Court for the Southern District of New York and led by New York Attorney General Letitia James, who has clashed in court before with President Donald Trump, demands an immediate halt to the freeze and the release of the funds.
The Trump administration announced the freeze earlier this week, citing concerns over widespread fraud in state-administered programs.
Critics of the administration say that since Trump returned to office this January, his administration has used allegations of "fraud" lacking sufficient evidence as an excuse to cut off funding and cancel programs the Republican Party dislikes, or punish Democratic-led states. They add that reports of fraud within Trump's Cabinet and the executive office are never investigated.
HHS officials cited a major Minnesota fraud scandal primarily involving Somali-American defendants, most of whom are US citizens, in child nutrition and day care schemes, as evidence of systemic issues affecting other Democratic-led states.
Democrats insist the benefits overwhelmingly go directly to US citizens, while the administration maintains significant portions have been exploited by ineligible recipients, including undocumented immigrants.
"This has nothing to do with fraud and everything to do with retribution against states that didn't support the president," said Illinois Gov. JB Pritzker.
State officials and advocates argue there is no evidence of comparable widespread fraud in California, Colorado, Illinois, or New York, and that the freeze punishes American citizens while using Minnesota's issues linked to both US citizens and immigrants in the Somali community as a pretext.
Vice President JD Vance defended the motion, saying social safety net funds are meant for low-income American citizens, not aliens or illegal immigrants gaming the system.
The case is expected to move quickly, with potential impacts on hundreds of thousands of low-income families if the funds remain blocked.
