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A US federal judge has ruled that the Trump administration cannot currently block federal funds for child care and social service programs from reaching five Democratic-led states, media reports said on Friday.

US District Judge Arun Subramanian, appointed by former President Joe Biden, issued a temporary order saying the states had shown sufficient legal grounds “to protect the status quo” for at least 14 days while the case is argued in court, according to ABC News.

The states – California, Colorado, Illinois, Minnesota, and New York – receive over $10 billion annually from three key programs: the Child Care and Development Fund, Temporary Assistance for Needy Families, and the Social Services Block Grant.

The US Department of Health and Human Services announced a funding pause on Tuesday, citing “reason to believe” the states were providing benefits to undocumented individuals, but did not present evidence or clarify why only these five states were targeted. Critics of the Trump administration say it is deliberately targeting Democratic-run states, from denying them disaster aid to shutting down important government offices.

“The government’s actions are creating operational chaos,” ABC quoted Jessica Ranucci, a lawyer from the New York Attorney General’s Office, as saying.

She noted that several states had already experienced funding delays and warned that families and child care providers could face uncertainty if access to funds is restricted.

The federal government had demanded extensive data, including names and Social Security numbers of benefit recipients dating back to 2022.

State officials argue the demand is unconstitutional and politically motivated, claiming that they already have systems in place to combat fraud.

- Later hearings to resolve issue

A government attorney, Kamika Shaw, stated during the hearing that, to her knowledge, the funding had not yet been cut off.

The court will hold further hearings to determine the legality of the freeze.

The Trump administration announced the freeze earlier this week, citing concerns over widespread fraud in state-administered programs.

Critics of the administration say that since Trump returned to office this January, his administration has used allegations of “fraud” lacking sufficient evidence as an excuse to defund programs the Republican Party dislikes, or punish Democratic-led states. They add that reports of fraud within Trump’s Cabinet and the executive office are never investigated.

Health and Human Services (HHS) officials cited a major Minnesota fraud scandal primarily involving Somali-American defendants, most of whom are US citizens, in child nutrition and day care schemes, as evidence of systemic issues affecting other Democratic-led states.

Democrats insist the benefits overwhelmingly go directly to US citizens, while the administration maintains significant portions have been exploited by ineligible recipients, including undocumented immigrants.