NYS Suing Trump Administration Over Benefit Freeze For Low-Income Families
Written by Tariq on January 13, 2026
The Trump administration is being sued by five Democratic-led states, including New York, over a freeze on benefits for low-income families. A federal judge has put a pause on this freeze temporarily, but it would affect more than $2 billion for the Child Care Development Fund and millions for the Social Services Block Grant.
HHS accuses all of those states of widespread fraud, as Minnesota faces mounting allegations of fraud from the Trump administration they say is largely tied to Somali migrant communities and daycare centers. The lawsuit is being led by New York Attorney General Letitia James, who says the allegations against New York are baseless and programs are in place to prevent fraud.
“We have a state comptroller as well as a city comptroller that engages in performance audits as well as financial audits. In addition to that, they work very closely with our office to inspect and review any allegation of fraud and waste,” said James.
James went on to say the funding freeze is an attempt to gain access to documents from the state pertaining to immigrants and says the federal government wants to use the freeze to quote ‘harass’ undocumented migrants living here.
Source: CBS 6 Albany
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