Judge's Injunction Lifts Freeze on $10B Child Care Funds

2 min readSources: Courthouse News

Judge Broderick's ruling lifts $10B federal child care funding freeze.

Why it matters: This decision allows ongoing support for millions of low-income families and sets a precedent for handling federal funding disputes, crucial for legal professionals advising on such cases.

  • Judge Vernon Broderick issued a preliminary injunction on February 6, 2026.
  • The freeze impacted child care for 1.3 million children across five states.
  • $5 billion of the affected funds were designated for California.
  • HHS cited fraud concerns without providing detailed evidence.

On February 6, 2026, Judge Vernon Broderick of a California federal court granted a preliminary injunction to lift a $10 billion funding freeze imposed by the U.S. Department of Health and Human Services (HHS). This action reinstates critical financial support for child care programs in California, Colorado, Illinois, Minnesota, and New York, assisting low-income families nationwide.

Initially imposed in early January, the freeze was justified by HHS due to concerns about funds potentially reaching undocumented individuals. However, the court found that HHS failed to substantiate these claims with evidence, leading to the freeze's reversal. The ruling allows programs funded by the Child Care and Development Fund (CCDF) and other federal sources to continue without interruption, benefiting approximately 1.3 million children.

California Attorney General Rob Bonta, who spearheaded the legal challenge, highlighted the essential nature of these funds, underscoring the fact that $5 billion was allocated solely to California. The states argued that freezing these funds would have drastically reduced resources, leading to fewer trained staff and smaller class sizes, ultimately harming the families relying on these services.

This decision followed an earlier temporary restraining order from January 2026, which had already highlighted the potential service disruptions. The ongoing litigation now focuses on the legality of HHS's action in managing appropriated funds and whether these administrative decisions can be justified without solid evidence. Additional information can be accessed through Courthouse News and the California Department of Justice.

Yes, but: The ruling temporarily lifts the freeze but does not fully resolve underlying policy disagreements on fund use and eligibility.

What's next: Ongoing litigation will determine long-term funding procedures and HHS's authority in similar cases.