In a bold legal move, 20 states have united to challenge the Trump administration over a glaring invasion of privacy that could compromise millions of Americans’ sensitive health information. On July 1, they launched a lawsuit targeting the administration’s reckless decision to hand over the personal details of Medicaid enrollees to the Department of Homeland Security (DHS). This clandestine transfer is a blatant violation of privacy laws designed to protect citizens’ rights.
The litigation, spearheaded by California Attorney General Rob Bonta, is now underway in the Northern District of California. The attorneys general assert that this mass data transfer breaches crucial federal health privacy protections established under the Health Insurance Portability and Accountability Act (HIPAA), alongside multiple other statutes ensuring data security.
These states are demanding the court declare this data transfer unauthorized and illegal. They unequivocally seek to halt the Department of Health and Human Services (HHS) from releasing any more Medicaid data to the DHS or any additional federal agency. The attorneys general are adamant about shielding Medicaid data from being exploited for immigration enforcement or other invasive surveillance tactics.
“The Trump Administration has upended longstanding privacy protections by illegally sharing sensitive, personal health data with ICE,” Bonta proclaimed. He emphasized the potential ramifications of this breach, warning it will create a climate of fear deterring individuals from seeking critical medical care.
As of January 2025, an astonishing 78.4 million individuals relied on Medicaid and the Children’s Health Insurance Program (CHIP) across America. The lawsuit reveals how numerous states regularly exchange certain personal data with the federal government to determine Medicaid eligibility. However, recent revelations exposed significant breaches of this process.
In June, California, Illinois, and Washington unearthed that HHS had illicitly disclosed extensive private Medicaid files to DHS, jeopardizing millions of individuals’ information. Notably, these states allow illegal immigrants to enroll in Medicaid funded solely by state taxpayer dollars—a situation that raises further concerns regarding accountability.
The data improperly shared was not anonymized or adequately secured. It included private identifiers and sensitive details like beneficiaries’ immigration status and addresses. The grievance primarily hinges on the administration’s purported rationalization: the need to verify that Medicaid benefits are preserved solely for lawful recipients.
In May, Dr. Mehmet Oz from the Centers for Medicare and Medicaid Services (CMS) revealed that an alarming $14 billion in Medicaid fraud, waste, and abuse had been identified, underscoring a pressing need for vigilance in managing these funds. However, the timing and context of the data transfer raise serious doubts about the federal government’s intentions.
The suit draws attention to what appears to be a systematic plan to create a database aimed at mass deportations and significant immigration enforcement. The plaintiffs staunchly argue that their grassroots effort seeks to preserve state Medicaid programs from exploitation for anti-immigrant agendas or any other purposes outside of their intended scope.
The coalition of states includes Arizona, Colorado, Connecticut, Delaware, Hawaii, Illinois, Massachusetts, Maine, Maryland, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont, and Washington—all standing firm alongside California in this fight.
In response, HHS spokesman Andrew Nixon asserted the department is diligently countering any misuse of federal Medicaid funds. He insisted that the data sharing was within legal bounds, affirming that “HHS acted entirely within its legal authority and in full compliance with all applicable laws.”
This critical legal battle will set a precedent for the protection of personal health information and the integrity of Medicaid programs across the nation.
