California leads 20 states in suit against Trump admin over sharing of Medicaid data with DHS

The suit was filed in the US District Court for the Northern District of California on Tuesday, with attorneys general from Arizona, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont, and Washington.

"In June, 2025, the federal government’s policy of keeping State Medicaid agencies’ healthcare records confidential abruptly changed, without notice, opportunity for public input, or reasoned decision-making," the lawsuit stated.

"Upon information and belief, the US Department of Health and Human Services (HHS)’s Centers for Medicare & Medicaid Services (CMS) handed over a trove of individuals’ protected health data obtained from States, including California, Illinois, and Washington, to other federal agencies, including the Department of Homeland Security (DHS). Millions of individuals’ health information was transferred without their consent, and in violation of federal law,” the document added.

"In doing so, the Trump administration silently destroyed longstanding guardrails that protected the public’s sensitive health data and restricted its use only for purposes that Congress has authorized, violating federal laws, including the requirements of the Administrative Procedure Act (APA)."

The suit claimed that HHS said the handing over of the data was "to ensure that Medicaid benefits are reserved for individuals who are lawfully entitled to receive them."

The attorneys general said that HHS was "falsely implying the existence of widespread Medicaid beneficiary fraud," and that Congress had "extended coverage and federal funds for emergency Medicaid to all individuals residing in the United States, even those who lack satisfactory immigration status."

The suit also alleged that the "mass transfer of sensitive Medicaid data will cause a predictable chilling effect on individuals’ willingness to enroll in Medicaid programs for which they are legally eligible. This chilling effect will be most acute among marginalized groups, such as: immigrants, transgender individuals, people with mental illness, and those seeking of reproductive and gender affirming care."

Bonta said in a statement, "The Trump Administration has upended longstanding privacy protections with its decision to illegally share sensitive, personal health data with ICE. In doing so, it has created a culture of fear that will lead to fewer people seeking vital emergency medical care. I’m sickened by this latest salvo in the President’s anti-immigrant campaign. We’re headed to court to prevent any further sharing of Medicaid data — and to ensure any of the data that’s already been shared is not used for immigration enforcement purposes."