Federal judge halts Trump administration’s health care funding cuts to Illinois, for now
By Lisa Schencker
Published on March 16, 2026.
A federal judge has halted efforts by the Trump administration to withhold $600 million in health care grants from Illinois, California, Colorado and Minnesota, while the states' lawsuit over the cuts proceeds. The judge, Manish Shah, stated that the states’ sovereign interests outweighed the executive branch’s unlawful interest in using preauthorized funding to shape state-run governance. The funds at risk included $86 million for public health efforts and $61 million for the Chicago Department of Public Health. Illinois alone stood to lose more than $170 million. The states argue that the cuts are unlawful as they are arbitrary and capricious and exceed their authority. However, the federal government maintains that its decisions to withhold these awards were reasonable and explained.
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