California, along with four other Democratic-led states, is suing the Trump administration over its decision to freeze $10 billion in federal funding, California Attorney General Rob Bonta announced late on Thursday.
Calling the administration’s decision “baseless and cruel,” Bonta said the lawsuit was filed jointly by California, New York, Minnesota, Illinois, and Colorado, following allegations of widespread fraud by President Donald Trump. The lawsuit argues that the freeze rests on unsubstantiated fraud claims and violates Congress’s constitutional power over spending. Bonta also said the federal government’s move would cause “irreparable harm.”
Bonta, who has sued the second Trump administration 53 times, added that letters sent by the Department of Health and Human Services earlier this week announcing the action provided no evidence to support claims of widespread fraud or the misuse of taxpayer dollars in California. The freeze applies to the Temporary Assistance for Needy Families, Social Services Block Grant, and Child Care and Development Fund programs.
“This is just the latest example of Trump’s willingness to throw vulnerable children, vulnerable families, and seniors under the bus if he thinks it will advance his vendetta against California and Democratic-led states,” Bonta said.
He later added that the administration “literally just targeted Democratic states because they’re Democrat.”
“They have not one shred, not one shred of evidence, and to turn off the funding with no justification,” he added. “It’s unlawful, and it’s also petty.”
During his final State of the State address on Thursday, Gov. Gavin Newsom (D-CA), who is eyeing a 2028 White House bid, praised Bonta and the number of times he has taken the administration to court.
“We’ve gone to court to protect our people, pushing back against this executive overreach,” Newsom said. “As a consequence, a point of pride for our attorney general, we have preserved about $168 billion in illegally frozen federal resources.”
Newsom has accused Trump of unleashing a political vendetta after he announced the action against five blue states, calling him a “degranged, habitual liar whose relationship with reality ended years ago.”
Newsom also turned the tables by saying he welcomed a federal investigation into his state for possible fraud.
“If [Trump] has some unique insight and information, I look forward to partnering with him,” Newsom said. “I can’t stand fraud.”
Binghamton University history professor Donald Nieman told the Washington Examiner that Trump’s actions and claims were a “gift” to Newsom.
“It allows him to grab headlines and continue to claim the mantle of the most pugnacious, media-savvy, and telegenic Democrat willing to take Trump on,” he said.
Los Angeles-based political pundit Jamie E. Wright said Bonta’s lawsuit and Newsom’s invitation to weed out fraud flipped the optics.
“While California appears to be cooperative and willing to allow its actions to be investigated, the White House appears to be acting in a vindictive manner,” Wright told the Washington Examiner. “This is bigger than child care alone. This is the beginning of the 2028 election cycle.”
By utilizing child care funding to punish states that voted Democratic in the last presidential election, Trump may be able to energize his base. Newsom may be able to elevate his national profile and demonstrate that he will oppose federal overreach at the expense of children and families by challenging the federal government’s use of child care funding to cause family-level harm.
“It is not hyperbole to say this is a political vendetta,” Wright added. “When funding essential for governing is utilized as a bargaining chip, the line separating good governance and petty politics blurs.”
James Christopher, founder of a New York–based political strategy firm, called the problem over threats to withhold federal funds a “textbook example of policy being weaponized for political coverage.” He added that the move further sharpens the contrast between the White House and Newsom.
“Politically, this escalation fuels a narrative that extends well beyond California,” Christopher told the Washington Examiner. “Every time federal power is used to punish a blue state, it reinforces Newsom’s positioning as a national Democratic defender — someone willing to challenge the administration publicly and aggressively.”
If Newsom decides to run in 2028, moments such as this will give him the tools to strengthen his national profile and rally Democrats nationwide.
“From a strategic standpoint, this isn’t just a dispute over child care funding,” Christopher said. “It’s another front in an ongoing struggle over federal authority, state autonomy, and who gets to define the moral high ground when policy decisions intersect with people’s livelihoods.”