(LifeSiteNews) — A federal judge in New York blocked the Trump administration from freezing $10 billion in funding for childcare and other social services in five Democrat-led states despite recent revelations of massive fraud perpetrated through fake money laundering daycare operations.
The U.S. Department of Health and Human Services (HHS) explained that it was pausing the funding because it had “reason to believe” those states were funneling money to people living in the U.S. illegally.
Biden-appointed U.S. District Judge Arun Subramanian said the five states — Minnesota, California, Colorado, Illinois, and New York — had met a legal threshold “to protect the status quo” for 14 days while arguments are made in court.
“Federal district court judge rules taxpayers must fund infinite refugee daycare scams,” White House Deputy Chief of Staff Stephen Miller noted.
“This is not a legitimate system. This is not democracy,” he declared.
Judge Subramanian “issued an injunction knowing the states don’t have a snowball’s chance in hell of winning this case. Federal courts cannot force the Executive to disburse funds on a particular timeline absent a clear statutory command,” said Insurrection Barbie, a conservative commentary site with over 1 million followers on X.
“And there is no clear statutory authority to disburse funds immediately to daycares absent a thorough review,” she said. “So this judge issued an injection forcing the waste of taxpayer money in a case he knows the states won’t actually win on the merits.”
“To prevent fraud, we asked states to provide receipts before sending taxpayer money for child care,” HHS Deputy Secretary Jim O’Neill explained.
“Five blue states sued and an activist Biden-appointed judge just ordered us to stop asking. What are they afraid of?” he wondered.
“We will comply with the court, but we will fight. We will appeal. We will keep asking questions,” O’Neill said. “We will stop the fraud.”
Elon Musk responded with one word: “Bravo!”
Bravo!
— Elon Musk (@elonmusk) January 10, 2026
“It is obviously fair and normal to ask for receipts before blindly wiring money or fraud will grow to infinity!” Musk declared in a second post. “The blue states are suing for one reason: to keep the fraud going.”
After independent journalist Nick Shirley pulled back the curtain on bogus Somali-run childcare centers operating in Minnesota, the Trump administration announced it would freeze funding in the Gopher State and the others.
Shirley’s stunning 40-minute video exposé has been viewed 140 million times since its December 26 release on X. HIs efforts were quickly amplified by some of the biggest names in the conservative movement, including Vice President JD Vance and Musk.
“The reason why is obvious,” LifeSiteNews’ Peter Michaels noted earlier this week. “They highlight the corrupt and wasteful spending that Donald Trump promised to cut when he assumed office in January.”
🚨 Here is the full 42 minutes of my crew and I exposing Minnesota fraud, this might be my most important work yet. We uncovered over $110,000,000 in ONE day. Like it and share it around like wildfire! Its time to hold these corrupt politicians and fraudsters accountable
We ALL… pic.twitter.com/E3Penx2o7a
— Nick shirley (@nickshirleyy) December 26, 2025
Late Friday night, Elon Musk took to X again:
If the American public is unable to influence the outcome, we do not live in a democracy.
The House, Senate and Presidency are Republican and yet a single activist masquerading as a judge is able to force massive fraud to continue …
If the American public is unable to influence the outcome, we do not live in a democracy.
The House, Senate and Presidency are Republican and yet a single activist masquerading as a judge is able to force massive fraud to continue … https://t.co/AWJIZN07ZG
— Elon Musk (@elonmusk) January 10, 2026
