Politics
Federal judge blocks White House freeze on 'financial assistance' amid anger, confusion
WASHINGTON — A federal judge Tuesday temporarily blocked a Trump administration directive that would have frozen an array of federal financial aid while the administration assessed whether it comported with the new president’s agenda, finding the directive had the potential to cause “irreparable harm” to Americans.
U.S. District Judge Loren AliKhan delayed the Office of Management and Budget memorandum from taking effect until at least 5 p.m. Monday, while a legal challenge to it by a coalition of nonprofit organizations plays out.
The ruling by AliKhan, an appointee of President Biden, followed a rush of confusion and anger among Democratic leaders, state officials and federal program managers over the directive’s vagueness, as well as efforts by the White House to walk back its scope after first issuing the memo late Monday.
Dr. Georges C. Benjamin, executive director of the American Public Health Assn. — part of the coalition that sued — said the directive had the potential to cause “a lot of dysfunction and the loss of services,” and welcomed the judge’s decision to halt it while the litigation proceeds.
“When you run a nonprofit or a small business, and basically your bank account has been, in effect, closed … you have no sense of whether you’re going to get reimbursed for that work — that’s a big problem,” he said.
The administration’s order was also facing a separate legal challenge from California and other states, where officials argued the directive was an unconstitutional power grab by President Trump that would harm vulnerable populations.
“We will not stand by while the president attempts to disrupt vital programs that feed our kids, provide medical care to our families and support housing in our communities,” California Atty. Gen. Rob Bonta said at a news conference. “We won’t stand by while the president breaks the law and oversteps his authority, as outlined in our Constitution.”
Bonta said the order threatens trillions of dollars in federal funding, and was “reckless, it is dangerous, unprecedented in scope and devastating in its intended effect.”
New York Atty. Gen. Letitia James, who is leading the effort with Bonta, called the memo “plainly unconstitutional.”
“The president does not get to decide which laws to enforce and for whom,” James said. “When Congress dedicates funding for a program, the president cannot pull that funding on a whim.”
Bonta and James spoke after a day of swirling speculation about the scope of the order — which the White House downplayed even as it worked to specify the order’s reach.
The White House issued an updated memo Tuesday that expanded a list of programs exempted from the funding pause, including Social Security, Medicare, Medicaid and the food assistance program known as SNAP. Also exempted would be federal funding for small businesses, farmers, Pell Grant recipients, Head Start, rental assistance “and other similar programs,” the White House said.
Karoline Leavitt, Trump’s press secretary, said that the directive was “not a blanket pause on federal assistance and grant programs” and that anyone receiving “individual assistance from the federal government” would continue receiving that aid. She also noted that the cuts, which were meant to take effect Tuesday afternoon, were temporary, and that leaders of federal programs were free to call Trump budget officials to make the case that their programs should not be frozen.
She also suggested the administration was clear on the order’s scope, and confusion on that front was limited to the media.
Both James and Bonta said the White House’s attempts to minimize the scope of the order after confusing program managers and terrifying benefit recipients across the country did not resolve their concerns or negate the need for their lawsuit.
On the contrary, Bonta said that the initial order had “thrown state programs into chaos,” and the White House’s attempts to clarify it had “further fueled” the confusion.
James said some states were already reporting that funds had been frozen, including for programs that the White House said would not be affected. Many states had been shut out of their Medicaid reimbursement systems, she said. Other programs affected in different states included Head Start and child development block grants, she said.
California is expected to distribute $168.3 billion in federal funds and grants through the fiscal year that ends June 30. Officials are assessing what of that funding is at risk. Los Angeles officials were also scrambling to make sense of the order, which could affect housing vouchers and homeless assistance grants, according to internal emails.
Bonta said he is coordinating with other state officials, and believes that federal disaster relief funding for the recovery from L.A.’s devastating wildfires remains at risk under the order.
Gov. Gavin Newsom said he remained confident in the state’s partnership with the federal government to meet fire-related needs, but also said the directive on financial aid was “completely inconsistent with the law.”
“It’s unconstitutional and I think any objective observer sees that,” he said.
The uproar began late Monday, after Matthew J. Vaeth, acting director of the Office of Management and Budget, issued a memo announcing a “temporary pause” on grants, loans and other financial assistance.
Vaeth wrote that voters had given Trump a “mandate to increase the impact of every federal taxpayer dollar,” and Trump needed to determine which spending by the government aligned with his agenda.
“Financial assistance should be dedicated to advancing Administration priorities, focusing taxpayer dollars to advance a stronger and safer America, eliminating the financial burden of inflation for citizens, unleashing American energy and manufacturing, ending ‘wokeness’ and the weaponization of government, promoting efficiency in government, and Making America Healthy Again,” he wrote. “The use of Federal resources to advance Marxist equity, transgenderism, and green new deal social engineering policies is a waste of taxpayer dollars that does not improve the day-to-day lives of those we serve.”
Democrats immediately began sounding alarms and calling the directive unconstitutional and far beyond the scope of Trump’s power as president, given that Congress, not the White House, generally appropriates funding.
Senate Appropriations Vice Chair Patty Murray (D-Wash.) said the fact that “Congress holds the power of the purse” is “very clear in the Constitution.”
Sen. Jeff Merkley (D-Ore.), the top Democrat on the Senate Budget Committee, called the White House move “a constitutional crisis.” His committee is scheduled to vote Thursday on Trump’s nomination of Russ Vought as White House budget chief. Vought is the architect of the spending freeze.
The original memorandum ordered all federal agencies to conduct a “comprehensive analysis” of their spending to determine which of it is “consistent with the President’s policies” and the raft of executive orders that Trump has issued.
In the interim, it said, federal agencies must — to “the extent permissible under applicable laws” — pause all disbursements of funds or “other relevant agency activities” that may be covered by Trump’s orders, “including, but not limited to, financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal,” Vaeth wrote.
The pause, the memo said, will give the Trump administration time to “determine the best uses of the funding” moving forward.
Leading Republicans largely defended the move — suggesting it was a normal act for an incoming administration.
“I think that’s a normal practice at the beginning of administration, until they have an opportunity to review how the money is being spent,” Senate Majority Leader John Thune said Tuesday morning.
Democrats disagreed — issuing especially critical reactions prior to the White House’s clarifications.
Senate Minority Leader Charles E. Schumer (D-N.Y.) called the directive “outrageous” and “a dagger at the heart of the average American family in red states and blue states, in cities, in suburbs, in rural areas.”
Former House Speaker Nancy Pelosi (D-San Francisco) wrote that Trump’s “illegal scheme will raise costs, hurt working families and deny critical resources for Americans in need.” Rep. John Garamendi (D-Walnut Grove) said the order will cause Americans to suffer.
A coalition including the American Public Health Assn. and the National Council of Nonprofits is independently challenging the memo in court, as well.
The order followed a separate directive by the Trump administration to halt a range of foreign aid.
Mark Peterson, a UCLA professor who studies public policy and political science, said the original memo was without precedent and left “extreme ambiguity as to what it affects and how it applies,” as well as its duration.
“Anything that has, from the point of view of the Trump administration, the aroma of dealing with equity or inclusion issues could be put under threat,” Peterson said — and “there’s so much misunderstanding about what those issues are.”
Times staff writers Pinho reported from Washington, Rector from San Francisco and Alpert Reyes from Los Angeles. Times staff writer Taryn Luna in Sacramento contributed to this report.
Politics
Wyoming Supreme Court rules laws restricting abortion violate state constitution
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The Wyoming Supreme Court ruled on Tuesday that a pair of laws restricting abortion access violate the state constitution, including the country’s first explicit ban on abortion pills.
The court, in a 4-1 ruling, sided with the state’s only abortion clinic and others who had sued over the abortion bans passed since the U.S. Supreme Court overturned Roe v. Wade in 2022, which returned the power to make laws on abortion back to the states.
Despite Wyoming being one of the most conservative states, the ruling handed down by justices who were all appointed by Republican governors upheld every previous lower court ruling that the abortion bans violated the state constitution.
Wellspring Health Access in Casper, the abortion access advocacy group Chelsea’s Fund and four women, including two obstetricians, argued that the laws violated a state constitutional amendment affirming that competent adults have the right to make their own health care decisions.
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The Wyoming Supreme Court ruled that a pair of laws restricting abortion access violate the state constitution. (Tom Williams/CQ-Roll Call, Inc via Getty Images)
Voters approved the constitutional amendment in 2012 in response to the federal Affordable Care Act, which is also known as Obamacare.
The justices in Wyoming found that the amendment was not written to apply to abortion but noted that it is not their job to “add words” to the state constitution.
“But lawmakers could ask Wyoming voters to consider a constitutional amendment that would more clearly address this issue,” the justices wrote.
Wellspring Health Access President Julie Burkhart said in a statement that the ruling upholds abortion as “essential health care” that should not be met with government interference.
“Our clinic will remain open and ready to provide compassionate reproductive health care, including abortions, and our patients in Wyoming will be able to obtain this care without having to travel out of state,” Burkhart said.
Wellspring Health Access opened as the only clinic in the state to offer surgical abortions in 2023, a year after a firebombing stopped construction and delayed its opening. A woman is serving a five-year prison sentence after she admitted to breaking in and lighting gasoline that she poured over the clinic floors.
Wellspring Health Access opened as the only clinic in the state to offer surgical abortions in 2023, a year after a firebombing stopped construction. (AP)
Attorneys representing the state had argued that abortion cannot violate the Wyoming constitution because it is not a form of health care.
Republican Gov. Mark Gordon expressed disappointment in the ruling and called on state lawmakers meeting later this winter to pass a constitutional amendment prohibiting abortion that residents could vote on this fall.
An amendment like that would require a two-thirds vote to be introduced as a nonbudget matter in the monthlong legislative session that will primarily address the state budget, although it would have significant support in the Republican-dominated legislature.
“This ruling may settle, for now, a legal question, but it does not settle the moral one, nor does it reflect where many Wyoming citizens stand, including myself. It is time for this issue to go before the people for a vote,” Gordon said in a statement.
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Gov. Mark Gordon expressed disappointment in the ruling. (Getty Images)
One of the laws overturned by the state’s high court attempted to ban abortion, but with exceptions in cases where it is needed to protect a pregnant woman’s life or in cases of rape or incest. The other law would have made Wyoming the only state to explicitly ban abortion pills, although other states have implemented de facto bans on abortion medication by broadly restricting abortion.
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Abortion has remained legal in the state since Teton County District Judge Melissa Owens blocked the bans while the lawsuit challenging the restrictions moved forward. Owens struck down the laws as unconstitutional in 2024.
Last year, Wyoming passed additional laws requiring abortion clinics to be licensed surgical centers and women to receive ultrasounds before having medication abortions. A judge in a separate lawsuit blocked those laws from taking effect while that case moves forward.
The Associated Press contributed to this report.
Politics
What Trump’s vow to withhold federal child-care funding means in California
SACRAMENTO — Gov. Gavin Newsom and other state Democratic leaders accused President Trump of unleashing a political vendetta after he announced plans to freeze roughly $10 billion in federal funding for child care and social services programs in California and four other Democrat-controlled states.
Trump justified the action in comments posted on his social media platform Truth Social, where he accused Newsom of widespread fraud. The governor’s office dismissed the accusation as “deranged.”
Trump’s announcement came amid a broader administration push to target Democratic-led states over alleged fraud in taxpayer-funded programs, following sweeping prosecutions in Minnesota. The U.S. Department of Health and Human Services confirmed the planned funding freeze, which was first reported by the New York Post.
California officials said they have received no formal notice and argued the president is using unsubstantiated claims to justify a move that could jeopardize child care and social services for low-income families.
How we got here
Trump posted on his social media site Truth Social on Tuesday that under Newsom, California is “more corrupt than Minnesota, if that’s possible???” In the post, Trump used a derogatory nickname for Newsom that has become popular with the governor’s critics, referring to him as “Newscum.”
“The Fraud Investigation of California has begun,” Trump wrote.
The president also retweeted a story by the New York Post that said his Department of Health and Human Services will freeze taxpayer funding from the Child Care Development Fund, the Temporary Assistance for Needy Families program, which is known as CalWORKS in California, and the Social Services Block Grant program. Health and Human Services said the affected states are California, Colorado, Illinois, Minnesota and New York.
“For too long, Democrat-led states and Governors have been complicit in allowing massive amounts of fraud to occur under their watch,” said Andrew Nixon, a department spokesperson. “Under the Trump Administration, we are ensuring that federal taxpayer dollars are being used for legitimate purposes. We will ensure these states are following the law and protecting hard-earned taxpayer money.”
The department announced last month that all 50 states will have to provide additional levels of verification and administrative data before they receive more funding from the Child Care and Development Fund after a series of fraud schemes at Minnesota day-care centers run by Somali residents.
“The Trump Administration is using the moral guise of eliminating ‘fraud and abuse’ to undermine essential programs and punish families and children who depend on these services to survive, many of whom have no other options if this funding disappears,” Kristin McGuire, president of Young Invincibles, a young-adult nonprofit economic advocacy group, said in a statement. “This is yet another ideologically motivated attack on states that treats millions of families as pawns in a political game.”
California pushes back
Newsom’s office brushed off Trump’s post about fraud allegations, calling the president “a deranged, habitual liar whose relationship with reality ended years ago.” Newsom himself said he welcomes federal fraud investigations in the state, adding in an interview on MS NOW that aired Monday night: “Bring it on. … If he has some unique insight and information, I look forward to partnering with him. I can’t stand fraud.”
However, Newsom said cutting off funding hurts hardworking families who rely on the assistance.
“You want to support families? You believe in families? Then you believe in supporting child care and child-care workers in the workforce,” Newsom told MS NOW.
California has not been notified of any changes to federal child-care or social services funding. H.D. Palmer, a spokesperson for the Department of Finance, said the only indication from Washington that California’s child-care funding could be in jeopardy was the vague 5 a.m. post Tuesday by the president on Truth Social.
“The president tosses these social media missives in the same way Mardi Gras revelers throw beads on Bourbon Street — with zero regard for accuracy or precision,” Palmer said.
In the current state budget, Palmer said, California’s child-care spending is $7.3 billion, of which $2.2 billion is federal dollars. Newsom is set to unveil his budget proposal Friday for the fiscal year that begins July 1, which will mark the governor’s final spending plan before he terms out. Newsom has acknowledged that he is considering a 2028 bid for president, but has repeatedly brushed aside reporters’ questions about it, saying his focus remains on governing California.
Palmer said while details about the potential threat to federal child-care dollars remain unclear, what is known is that federal dollars are not like “a spigot that will be turned off by the end of the week.”
“There is no immediate cutoff that will happen,” Palmer said.
Since Trump took office, California has filed dozens of legal actions to block the president’s policy changes and funding cuts, and the state has prevailed in many of them.
What happened in Minnesota
Federal prosecutors say Minnesota has been hit by some of the largest fraud schemes involving state-run, federally funded programs in the country. Federal prosecutors estimate that as much as half of roughly $18 billion paid to 14 Minnesota programs since 2018 may be fraudulent, with providers accused of billing for services never delivered and diverting money for personal use.
The scale of the fraud has drawn national attention and fueled the Trump administration’s decision to freeze child-care funds while demanding additional safeguards before doling out money, moves that critics say risk harming families who rely on the programs. Gov. Tim Walz has ordered a third-party audit and appointed a director of program integrity. Amid the fallout, Walz announced he will not seek a third term.
Outrage over the fraud reached a fever pitch in the White House after a video posted online by an influencer purported to expose extensive fraud at Somali-run child-care centers in Minnesota. On Monday, that influencer, Nick Shirley, posted on the social media site X, “I ENDED TIM WALZ,” a claim that prompted calls from conservative activists to shift scrutiny to Newsom and California next.
Right-wing podcaster Benny Johnson posted on X that his team will be traveling to California next week to show “how criminal California fraud is robbing our nation blind.”
California officials have acknowledged fraud failures in the past, most notably at the Employment Development Department during the COVID-19 pandemic, when weakened safeguards led to billions of dollars in unemployment payments later deemed potentially fraudulent.
An independent state audit released last month found administrative vulnerabilities in some of California’s social services programs but stopped short of alleging widespread fraud or corruption. The California state auditor added the Department of Social Services to its high-risk list because of persistent errors in calculating CalFresh benefits, which provides food assistance to those in need — a measure of payment accuracy rather than criminal activity — warning that federal law changes could eventually force the state to absorb billions of dollars in additional costs if those errors are not reduced.
What’s at stake in California
The Trump administration’s plans to freeze federal child-care, welfare and social services funding would affect $7.3 billion in Temporary Assistance for Needy Families funding, $2.4 billion for child-care subsidies and more than $800 million for social services programs in the five states.
The move was quickly criticized as politically motivated because the targeted states were all Democrat-led.
“Trump is now illegally freezing childcare and other funding for working families, but only in blue states,” state Sen. Scott Wiener (D-San Francisco) said in a statement. “He says it’s because of ‘fraud,’ but it has nothing to do with fraud and everything to do with politics. Florida had the largest Medicaid fraud in U.S. history yet isn’t on this list.”
Added California Assembly Speaker Robert Rivas (D-Hollister): “It is unconscionable for Trump and Republicans to rip away billions of dollars that support child care and families in need, and this has nothing to do with fraud. California taxpayers pay for these programs — period — and Trump has no right to steal from our hard-working residents. We will continue to fight back.”
Times staff writer Daniel Miller contributed to this report.
Politics
Video: Walz Drops Re-Election Bid as Minnesota Fraud Scandal Grows
new video loaded: Walz Drops Re-Election Bid as Minnesota Fraud Scandal Grows
transcript
transcript
Walz Drops Re-Election Bid as Minnesota Fraud Scandal Grows
Governor Tim Walz of Minnesota abandoned his re-election bid to focus on handling a scandal over fraud in social service programs that grew under his administration.
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“I’ve decided to step out of this race, and I’ll let others worry about the election while I focus on the work that’s in front of me for the next year.” “All right, so this is Quality Learing Center — meant to say Quality ‘Learning’ Center.” “Right now we have around 56 kids enrolled. If the children are not here, we mark absence.”
By Shawn Paik
January 6, 2026
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