Federal Court Blocks Trump Administration’s Childcare Funding Freeze

The lawsuit is ongoing, but the ruling restores more than $10 billion in federal funding already approved by Congress for childcare providers and families.

A federal court has granted a preliminary injunction blocking the Trump administration’s freeze on more than $10 billion in childcare and family assistance funding. The ruling in AFSCME v. U.S. Department of Health and Human Services et al. restores critical support for working families, providers, and small businesses.

The American Federation of State, County and Municipal Employees (AFSCME), Service Employees International (SEIU), and the Main Street Alliance are among the unions that filed the lawsuit. Together, these unions represent millions of people in occupations that serve people, including nurses and childcare providers. Small businesses also joined in.

The lawsuit was in direct response to Trump’s boasting about how his administration terminated federal grants in retribution because the recipients were in “blue states.”

“The court’s decision to block the administration’s illegal funding freeze is a major victory for providers, families, and the children they serve,” AFSCME President Lee Saunders said in a statement. “The AFSCME members who provide essential child care services in these communities can now focus on what they do best: helping children learn and thrive.”

Trump ‘Targeted’ Blue States In Childcare, Freezing Funding, Lawsuit Claims

In January, the Trump administration halted funding to programs in California, Colorado, Illinois, Minnesota, and New York. The lawsuit challenged the funding freeze under the Administrative Procedure Act and the First Amendment. Plaintiffs argue the freeze was imposed without the required legal process. They also claimed the freeze lacked lawful authority and was driven by political motives.

AFSCME members provided testimony in the case, explaining the impact on families and employees of child care centers if the centers were closed due to the funding freeze.

The lawsuit is ongoing, but Tuesday’s ruling means that federal funding already approved by Congress will resume supporting childcare providers and families.

“For small businesses, child care isn’t a side issue; it’s essential infrastructure,” said Richard Trent, executive director of Main Street Alliance. “When this funding is frozen, our employees can’t find or afford care, parents are forced to cut hours or leave jobs, and local businesses lose the stable workforce they depend on.”