In a bold move against the Trump administration, attorneys general from five Democrat-led states, including Illinois, have initiated a lawsuit following a controversial decision to halt funding for several public benefit programs. This decision, justified by the administration as a measure against fraud, impacts essential programs aimed at assisting low-income families.

The states involved—California, Colorado, Minnesota, Illinois, and New York—are challenging this action, labeling it an unconstitutional overreach of power. The funds in question are crucial, supporting three federal programs, two of which are pivotal in helping families with children rise above the poverty line.

Amidst this legal battle, the U.S. District Court for the Southern District of New York issued a temporary restraining order on Friday, providing a momentary reprieve in the case.

Illinois Attorney General Kwame Raoul expressed satisfaction with the court’s decision, emphasizing the importance of the funding in question. “This attempted funding freeze is unjustifiable,” Raoul stated. “It’s a cruel and illegal maneuver by the Trump administration to manipulate the lives of children and low-income families for political gain. I am steadfast in my commitment to shield Illinois residents from this president’s ongoing disregard for our Constitution and rule of law.”

Leading the charge in the lawsuit, New York Attorney General Letitia James accused the administration of exceeding its authority by blocking billions of dollars already allocated to the states by Congress.

The lawsuit, lodged in the U.S. District Court for the Southern District of New York, seeks a court order to lift the freeze and ensure the immediate release of the funds, underscoring the fundamental legal battle over federal funding and state rights.

“Once again, the most vulnerable families in our communities are bearing the brunt of this administration’s campaign of chaos and retribution,” James said.

The U.S. Department of Health and Human Services this week told the five states it was freezing their money for the Child Care and Development Fund, which subsidizes child care for children from low-income families; the Temporary Assistance for Needy Families program, which provides cash assistance and job training; and the Social Services Block Grant.

HHS officials did not immediately respond to a request for comment on the lawsuit.

About half of the $10 billion in funding targeted by the Trump administration supported California programs, said the state’s attorney general, Rob Bonta.

In letters to the states, Alex J. Adams, assistant secretary for the Administration for Children and Families, wrote that HHS had “reason to believe” the states were providing benefits to people who were in the U.S. illegally, offering no further details about the allegations. They requested reams of data, including the names and Social Security numbers of everyone that had received some of the benefits.

“The letters requested that California turn over essentially every document ever associated with the state’s implementation of these federal programs and do so within 14 days, by Jan. 20, including personally identifiable information about program participants,” Bonta said. “That is deeply concerning and also deeply frustrating.”

The government intensified its focus on the child care subsidy program after a conservative YouTuber released a video claiming day care centers in Minneapolis had committed up to $100 million in fraud. The child care centers were run by members of the city’s Somali community, which has been frequently maligned by Trump and targeted by immigration authorities.

“Is there evidence of fraud? No, but there is evidence, in fact, that in the last presidential election, our state did not vote for this president,” Democratic Sen. Dick Durbin said.

Minnesota Gov. Tim Walz, a Democrat, has defended his state’s response and said his state is taking aggressive action to prevent further fraud.

Over 100,000 low-income working families in Illinois get help from the federal government to help pay for child care.

Among its four North Side locations, Concordia Place serves about 535 children: 60% receive federal funds to attend, including 2-and-half-year-old Emma Bermeo.

“I remember when I started this process. I was looking for a day care, and one of the takers say it as $500 per week. I couldn’t make that,” Tatiana Bermeo said.

Bermeo only pays a fraction of that for her daughter, Emma, to attend Concordia Place, through the Child Care Assistance Program. It is partly funded by the federal government. Low-income parents only qualify if they are working, going to school or in job training.

“So, bring my daughter here at Concordia Place, allows me to work full time, and also, last summer, I just graduated from the UIC, so, allow me to also make to get my master degree,” Bermeo said.

Durbin says children are paying the price for political retribution.

The Trump administration says it has identified serious concerns, but it has yet to provide the state with any specific evidence of fraud. Durbin says the programs affected are audited by the state and federal level regularly.

“We’ll have to make some decisions whether we can stay open,” said Michelle Redd, Building Blocks Learning Academy owner.

Redd is an independent owner of an Englewood child care facility. If the funds remain frozen for a long period of time, she cannot operate.

“I have 153 families. So, we have three private paying parents. So, almost 100% of our families would be impacted by the freeze of these funds,” Redd said.

If child care providers are forced to close because of the frozen funds, it’s not just owners, staff and families that will be impacted.

The trickle-down effect includes food, milk and educational supply vendors, who will lose clients.

ABC7 Chicago’s Sarah Schulte contributed to this report.