Court blocks attempted federal freeze of $10 billion for child care and services to Minnesota families

A federal judge again issued a preliminary injunction blocking the U.S. Administration for Children and Families from freezing approximately $10 billion for families in five states, including Minnesota. 

This decision builds on two earlier temporary restraining orders in Minnesota’s favor and maintains stability for families, providers, and communities across the state by protecting access to hundreds of millions of dollars of critical services. The attempt to freeze these funds stems from an online video that alleged fraud at several child care programs. The misleading claims in this video have created safety risks for children, families, and businesses.

“We are pleased with the court’s decision and grateful for the continued rulings that put families first,” said DCYF Commissioner Tikki Brown. “This protects child care and other essential benefits while the case moves forward. DCYF remains committed to correcting misinformation, fighting and preventing fraud, and ensuring children and families have the stability and support they need to thrive.” 

In late December 2025 and early January 2026, the U.S. Administration for Children and Families (ACF) threatened to freeze funds and restrict drawdowns for critical funds. In response, Minnesota Attorney General Keith Ellison, along with a coalition of attorneys general from four other states, secured a temporary restraining order blocking that action. 

On Friday, Feb. 6, the court granted a preliminary injunction, pausing any action until the case is heard, which prevents ACF from freezing approximately $10 billion in investments for families in five states, including Minnesota. These essential services include:

• The Child Care Assistance Program, which makes child care more affordable for families so parents can work or attend school and children are well cared for and thrive as learners.
• Temporary Assistance for Needy Families, which helps families with children afford essentials like gas, groceries, and rent.
• The Social Service Block Grant program supports a range of services for children implemented through the state and counties, including foster care.

Families should continue to access services as usual, and partners should continue serving families and children through standard practices and procedures until more information is available. 

Learn more about the DCYF commitment to program integrity and the federal actions that could affect Minnesota’s children, families, and communities and how the state is responding.