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Illinois, 4 other states targeted for $10B child care funding freeze win restraining order

Illinois Attorney General Kwame Raoul is pictured on the floor of the Illinois Senate on May 30, 2025.
(Capitol News Illinois photo by Jerry Nowicki)
Illinois Attorney General Kwame Raoul is pictured on the floor of the Illinois Senate on May 30, 2025.

Illinois and the four other Democratic-led states that were subject to the Trump administration’s freeze on $10 billion in federal funding for child care and family services secured a restraining order on Friday in their lawsuit seeking to block the move.

The restraining order, issued by Judge Arun Subramanian in the Southern District of New York, means the freeze can’t take effect while the full case plays out, unless an appellate court overturns the stay.

Illinois Attorney General Kwame Raoul called the freeze, which includes about $1 billion for child care programs in Illinois, “callous,” and stressed that it targeted only Democratic-led states.

“There is no justification for this attempted funding freeze,” Raoul said in a statement praising the order. “It is a cruel and illegal attempt by the Trump administration to play politics with the lives of children and low-income families.”

The U.S. Department of Health and Human Services announced late Tuesday that it was freezing the distribution of funds for Illinois, California, Colorado, Minnesota and New York because of concerns about fraud, although it didn’t provide evidence or cite specific claims. The department called for those states to submit additional documentation in two weeks in order to receive the money.

Raoul joined his counterparts from the other four states in filing the suit Thursday against HHS and its secretary, Robert Kennedy Jr.

“Congress enacted this critical funding to support families and help working parents access child care, and the president does not have the authority to withhold it in this way,” Raoul said in a Thursday statement.

The 41-page lawsuit asked the court to immediately stop the freeze and order the release of funds.

Read now: CHILD CARE LAWSUIT 

‘Disfavored by the Trump administration’

The lawsuit accuses the administration of targeting Democratic states for political reasons, documenting several statements from President Donald Trump going back to December that specifically mention Illinois, California, Minnesota and New York. The statements include vague claims about fraud and attacks on the respective governors.

At a Friday news conference, all five attorneys general said the administration did not offer any evidence or specific allegations of fraud in the letters they received.

“If the president was serious about rooting out fraud, his administration would be investing more resources in partnering with states and supporting states’ efforts to root out fraud and abuse,” Raoul said. “But the real motivation behind this action is to punish Democrat-led states like Illinois that are disfavored by the Trump administration.”

The news release from HHS stated the funds will remain frozen until HHS’s Children and Family Services division reviews documents requested from the states and finds they are following federal requirements.

“Families who rely on child care and family assistance programs deserve confidence that these resources are used lawfully and for their intended purpose,” said Deputy Secretary Jim O’Neill. “This action reflects our commitment to program integrity, fiscal responsibility, and compliance with federal requirements.”

Gov. JB Pritzker released a statement Tuesday emphasizing that Illinois already has anti-fraud policies and reporting requirements for programs like this. Raoul said the same thing on Friday.

“We, on the local level, regularly partner with federal agencies investigating fraud and abuse to investigate and prosecute on a case-by-case basis,” Raoul said. “This approach of, without any specific evidence, threatening to freeze funds, is inconsistent with what we do on a normal basis to make sure that funds are appropriately being administered.”

Read more: Trump freezes $10B in social service, child care funding for Illinois, 4 other blue states

The freeze impacts three programs: the Child Care and Development Fund; Temporary Assistance for Needy Families, or TANF; and the Social Services Block Grant program. Those programs fund several Illinois programs that serve hundreds of thousands of Illinoisans

Raoul said he can’t provide an exact date for when federal funds Illinois has already received might run out, only saying the date is “fairly imminent.”

The lawsuit also claims that the two-week deadline to submit documents is unreasonable, and many of the requested documents involve individuals’ sensitive personal information.

Capitol News Illinois is a nonprofit, nonpartisan news service that distributes state government coverage to hundreds of news outlets statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.

Jerry Nowicki is bureau chief of Capitol News Illinois and has been with the organization since its inception in 2019.