States Challenge Trump Administration Over Medicaid Data Sharing
A group of twelve states, led by Democratic officials, is accusing the Trump administration of breaching a federal court order related to the sharing of Medicaid information with Immigration and Customs Enforcement (ICE). They are urging a judge to impose this ruling.
The states have filed a complaint with the U.S. District Court for the Northern District of California, seeking enforcement of an injunction that bars the Department of Health and Human Services (HHS) from sharing Medicaid data with ICE.
“It seems the Trump administration is ignoring a clear court ruling aimed at protecting sensitive data of individuals, including U.S. citizens and lawful residents. This is not only invasive but deeply troubling,” remarked California Attorney General Rob Bonta, who is at the forefront of this 22-state coalition. “When Californians sign up for Medi-Cal, they expect their information won’t be used for unrelated purposes. I’m asking the court to reinforce its earlier decision to assure all legal residents that these protections are in place.”
This legal matter originates from a lawsuit filed in July 2025 by California against the Trump administration. The suit accuses HHS of violating federal law by transferring sensitive Medicaid data concerning both lawful permanent residents and temporary residents. It contends that disclosing this personal information could dissuade eligible individuals from enrolling in Medicaid, which they are entitled to do.
Federal Judge Rules on Data Collection Limits
A federal judge previously determined in December that the Trump administration is prohibited from collecting personal data from lawful permanent residents or citizens. However, the administration can still gather basic information on individuals with temporary status, like their addresses and birth dates, albeit with restrictions that prevent the inclusion of sensitive health details.
The attorneys general have accused HHS of sharing a substantial dataset of Medicaid recipients with ICE, which they assert contravenes a federal court ruling that allows only a limited exchange of personal information while excluding lawful permanent residents. Furthermore, the accusation includes that the Trump administration failed to clarify criteria for identifying “lawfully present” residents.
Dan Greenberg, a senior legal fellow at the CATO Institute, suggested to FOX News Digital that HHS and ICE likely violated the district court’s instructions.
Concerns Over Data Sharing Practices
Greenberg explained that HHS communications indicate a transfer of a “large and complex” dataset of Medicaid beneficiaries to ICE, hinting that this may include information beyond the court’s framework. This is clearly a matter that needs resolution, as the states seek to compel the federal government to disclose the data shared and its use.
Moreover, he pointed out that the Medicaid Statistical Information System database lacks a straightforward method for accurately identifying illegal immigrants, complicating compliance with court orders regarding information sharing. “The system currently identifies those eligible for emergency Medicaid services, which does not distinctly separate illegal immigrants from those legally present,” Greenberg stated. He likened the situation to a court saying only part of certain records should be released, but HHS being unable to segregate the pertinent information.
The attorneys general from California and other states, including Arizona, Connecticut, and New York, among others, have signed the complaint. As of now, attempts to get comments from the White House and HHS remain unanswered.
