The Trump administration's Department of Health and Human Services (HHS) has rescinded a $10 billion freeze on childcare subsidies and social services funding for five states governed by Democratic administrations after legal challenges prevented the freeze from being implemented, according to court records released on Monday.
The department informed officials in California, Illinois, Colorado, New York and Minnesota that it was withdrawing its Jan. 5 and Jan. 6 letters to the states. The notice also rescinded all data requests and information requirements that had been associated with those letters.
A legal filing made public on Monday included the communication from HHS, which stated that the mechanism used to enforce the temporary restrictions on funding drawdowns had been terminated.
Earlier this year, a federal judge blocked the funding freeze for the duration of a lawsuit filed by the five states, preventing the administration from enforcing the restrictions while the case proceeds.
The Trump administration has previously sought to freeze or withhold federal funding from universities, research institutions and states over a range of policy disputes.
These have included concerns related to alleged fraud, climate initiatives, diversity programs, transgender policies, and pro-Palestinian protests in response to Israel's military campaign in Gaza.
Critics argue that the funding restrictions may violate constitutional protections, including rights related to free speech and due process, while the administration disputes those claims.
The administration, however, has maintained that its actions are intended to ensure compliance with federal policies and priorities.