Attorney General Keith Ellison of Minnesota has joined attorneys general from California, Colorado, Illinois, and New York in a lawsuit against the Trump administration. The legal action aims to stop the federal government from withholding more than $10 billion in funding intended for low-income families in these states.
On January 5 and 6, the Administration for Children and Families (ACF) notified these five states that it would freeze funding for three major programs: the Child Care and Development Fund (CCDF), Temporary Assistance for Needy Families (TANF), and the Social Services Block Grant (SSBG). These programs provide support such as childcare assistance, help with basic needs like gas, groceries, rent, and foster care services.
According to Attorney General Ellison, freezing these funds will immediately threaten key anti-poverty efforts. He stated: “This latest front in Donald Trump’s war on Minnesotans is as cruel as it is unlawful. Withholding all funding for these vital programs will not help fight fraud as purported, and will instead shred the finances of Minnesotans already struggling to get by. Without childcare assistance, poor families will be forced to choose between parents going to work and paying their bills or staying home to provide childcare during their working hours. And it’s not just families who benefit from these programs that will suffer. Minnesota’s entire childcare system will be put under immense strain if childcare centers lose the funding provided by these programs, which could force centers to lay off staff or close their doors entirely. This extreme outcome is not just cruel, it’s also another example of the Trump Administration going off the rails and deciding not to follow the processes and mechanisms Congress put in place to manage federal grants in a responsible way. Federal laws and regulations give a roadmap for reasonable, legal ways to audit funding programs and address areas of potential noncompliance, but this ‘funding freeze’ takes a chainsaw to the entire system without regard to who it hurts. I will not allow that to happen, so today I am filing a lawsuit to halt these cuts and protect families across Minnesota from Trump’s heartless attack on low-income families.”
In Minnesota specifically, the Department of Children, Youth, and Families oversees distribution of funds from CCDF for child care costs faced by working or studying parents; TANF helps low-income families afford essentials; SSBG provides flexible support including foster care.
The attorneys general argue there is no legitimate justification for freezing these funds. They claim that while letters sent by ACF cite concerns about “potential” fraud as grounds for suspension of aid, this reasoning serves as pretext for broader policy goals targeting social welfare programs favored by previous administrations.
The coalition contends that bypassing established procedures violates both statutory requirements governing federal grants and constitutional principles such as separation of powers. The group seeks a court order declaring this action illegal.
Joining Attorney General Ellison are his counterparts from California, Colorado, Illinois, and New York.

