Indian-origin judge accused of forcing Trump admin to 'hand over tax dollars' for alleged daycare fraud; Elon Musk calls it 'problematic'

A row erupted after an Indian-origin federal judge blocked the Trump administration from freezing billions of dollars in child care and social services funding, with MAGA base accusing the judge of forcing taxpayers to keep paying money tied to "fraud."

Tesla boss Elon Musk weighed in and attacked US District Judge Arun Subramanian, calling the situation "problematic."

Arun Subramanian is a Biden appointee confirmed in 2023 who issued a temporary restraining order earlier this week, stopping the GOP government from freezing more than $10 billion in federal funding to five Democrat-led states: New York, California, Colorado, Illinois, and Minnesota. The funds support child care, social services, and cash assistance programs for low-income families.


The Department of Health and Human Services (HHS) said it paused the funding to prevent fraud, particularly in daycare reimbursements, and alleged misuse of funds benefiting illegal immigrants. HHS had asked states to submit receipts and detailed records before further money was released.

Judge Subramanian’s order blocks that pause for 14 days, keeping funds flowing while the court considers a longer injunction. He claimed that the relief was meant to preserve the status quo and prevent “immediate and devastating impacts” on families who rely on the programs.

The ruling was not liked by the high-profile conservatives.

Musk said on X that if voters cannot influence outcomes despite Republicans controlling the House, Senate, and Presidency, America is not living under democratic rule. He accused a “single activist masquerading as a judge” of allowing massive fraud to continue.

Fox News host Laura Ingraham doubled down on the fraud claims. She called Subramanian "another activist in the resistance." She accused the judge of blocking Trump’s effort to stop Medicaid and child care funds to states that refuse to comply with federal demands.

Trump administration officials argued the judge overstepped his authority and that federal courts cannot force the executive branch to release funds on a specific timeline unless Congress clearly requires it. They also argue there is no statutory mandate to immediately disburse child care funds without a thorough fraud review.

The ruling was backed by New York Attorney General Letitia James, who praised the decision as a victory for vulnerable families. She called the funding freeze illegal and politically motivated, saying it would harm childcare services, domestic violence shelters, and low-income households.

HHS Deputy Secretary Jim O’Neill said the administration will comply with the order but will appeal, insisting the government will “keep asking questions” and “stop the fraud.”