HyperLocal Loop
Jul 14, 2026
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US Rescinds $10 Billion Freeze on Child Care Subsidies

The Trump administration’s Department of Health and Human Services has rescinded a $10 billion freeze on child care subsidies and social services funding for five states governed by Democrats after legal obstacles got in the way of the freeze attempts, court records showed on Monday.

Details of the Rescission

The Department of Health and Human Services communicated to officials in California, Illinois, Colorado, New York and Minnesota that it was rescinding its January 5 and January 6 letters to the states, including all data requests and information requirements associated with those letters.

A federal judge blocked the move earlier this year for the duration of a lawsuit against the freeze brought by the states. Republican President Donald Trump has threatened to freeze federal funding for universities, research institutions and states over a range of issues, including fraud claims, climate initiatives, diversity programs, transgender policies and pro-Palestinian protests against U.S. ally Israel’s assault on Gaza.

Rights advocates say the measures violate free speech and due process rights.


Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.

OBBM Network Editorial Staff

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Editorial team behind OBBM Network — independent, hyper-local journalism syndicated through HyperLocalLoop and OBBM Network TV.

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