California leads five states suing Trump administration over $10 billion in frozen grants

SACRAMENTO, Calif. — California and four other Democratic-led states filed a lawsuit against the Trump administration to block a $10 billion freeze on federal funding for childcare and family assistance programs.

California Attorney General Rob Bonta called the decision "baseless and cruel," noting that California stands to lose approximately $5 billion, including $1.4 billion for childcare. New York, Minnesota, Illinois, and Colorado joined California in the legal challenge.

The Trump administration justified the freeze by alleging widespread fraud within the states' welfare systems. However, Bonta said the U.S. Department of Health and Human Services has provided no evidence to support those claims.

The lawsuit, filed in a Manhattan federal court, argues that withholding the funds violates the spending power of Congress.

This marks the 53rd lawsuit California has filed against the Trump administration since the president took office.

The ongoing legal confrontation between Democratic-led states and the Trump administration has escalated beyond a mere budgetary dispute, emerging as a high-stakes manifestation of the political rift between Sacramento and Washington. By utilizing federal appropriations as political leverage, the White House is increasingly targeting core social services—a move that directly impacts low-income populations and the very demographic backbone of the Democratic electorate.

The administration appears to be leveraging isolated fraud allegations in Minnesota as a strategic catalyst to expand federal oversight into other blue states. By grouping California and New York into a broad narrative of systemic mismanagement, the executive branch is attempting to frame Democratic governance as fiscally irresponsible, regardless of the underlying evidence in individual jurisdictions.

For California, this 53rd lawsuit signifies a doubling down on its strategy of judicial resistance. However, the implications of this case extend far beyond state lines. At the heart of the legal challenge is a fundamental constitutional question regarding the "power of the purse": the extent to which the executive branch can unilaterally withhold funds already appropriated by Congress. The outcome is expected to set a definitive precedent for the separation of powers, testing the limits of executive authority to override legislative fiscal mandates.

The $1.4 billion cut to California’s childcare funding is set to take a heavy toll on low-income Vietnamese American families. For many in our community—especially those working in the nail salon industry, at local phở restaurants, or running small businesses—these subsidies are essential to staying in the workforce. Losing this support could force one parent to leave their job to provide full-time care, leading to a significant loss of household income and long-term financial instability. This disruption is more than just a minor setback; it is a direct blow to the economic resilience and mobility of families across the diaspora.