The attorneys general of five states last week filed a lawsuit against the U.S. Department of Health and Human Services for freezing $10 billion in child care, family assistance and social services funding.
HHS had announced earlier in the week that it was halting federal funds that support three social safety net programs in these states -- California, Colorado, Illinois, Minnesota and New York. The action affects:
- The Child Care and Development Fund, which helps low-income families access subsidized child care;
- The Temporary Assistance for Needy Families program, which provides direct cash assistance and employment services; and
- The Social Services Block Grant, which funds services such as foster care and child abuse prevention.
The agency cited concerns about widespread fraud and misuse of taxpayer dollars in state-administered programs.
“Families who rely on child care and family assistance programs deserve confidence that these resources are used lawfully and for their intended purpose,” Deputy Secretary Jim O’Neill said in announcing the funding halt. “This action reflects our commitment to program integrity, fiscal responsibility and compliance with federal requirements.”
The plaintiffs, however, countered that this action will immediately jeopardize some of the most important anti-poverty programs in their states and put vulnerable families at risk. They seek a court order declaring the funding freeze unlawful and preventing the administration from implementing it.
“Once again, the most vulnerable families in our communities are bearing the brunt of this administration’s campaign of chaos and retribution,” New York Attorney General Letitia James said in a statement. “After jeopardizing food assistance and health care, this administration is now threatening to cut off child care and other critical programs that parents depend on to provide for their children. As New Yorkers struggle with the rising cost of living, I will not allow this administration to play political games with the resources families need to help make ends meet.”
James said the administration has provided no legitimate justification for freezing these funds, has failed to provide any evidence of fraud; ignores the laws and regulations governing these programs; and usurps Congress’s power over spending and the constitutional principle of separation of powers.
HHS, however, said funds will remain frozen in this fashion until its Administration for Children and Families completes a review and determines that these states are in compliance with federal requirements.
“We have a responsibility to protect taxpayer dollars and ensure these programs serve the families they were created to help,” said Alex J. Adams, assistant secretary for Children and Families. “When there are credible concerns about fraud or misuse, we will act.”
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