A federal judge on Friday ordered the Trump administration to continue releasing federal funding for child care subsidies and other assistance programs to five Democratic-led states, temporarily blocking a new federal policy that sought to freeze the money.

The states — California, Colorado, Illinois, Minnesota and New York — challenged a policy announced earlier this week that paused funding for three major grant programs supporting low-income children and families. In court filings and a hearing Friday, the states said the freeze was already disrupting operations and creating “chaos,” arguing the federal government lacked legal justification for withholding the funds.

The U.S. Department of Health and Human Services said it paused the funding because it had “reason to believe” the states were providing benefits to people in the country illegally. However, the agency did not present evidence in court or explain why only these five states were targeted.

The affected programs include the Child Care and Development Fund, which helps low-income families afford child care; the Temporary Assistance for Needy Families program, which provides cash assistance and job training; and the Social Services Block Grant, which supports a range of family and community services. Together, the five states receive more than $10 billion annually from these programs.

U.S. District Judge Arun Subramanian, a Biden appointee, issued a temporary ruling requiring funds to continue flowing while further legal arguments proceed.

As part of its review, the federal government requested extensive data from the states, including names and Social Security numbers of benefit recipients dating back to 2022. The states argue the demand is unconstitutional and politically motivated, claiming it targets Trump’s political opponents rather than addressing fraud — which they say existing oversight systems already combat.

During Friday’s telephone hearing, New York Assistant Attorney General Jessica Ranucci said multiple states had already experienced delayed payments and warned that interruptions in child care funding would create immediate uncertainty for providers and families.

Government attorney Kamika Shaw told the court she understood that funding had not yet been fully halted, though the states disputed that assertion.

The judge’s order remains in effect as the case moves forward.