California sues Trump administration over Medicaid data transfer to DHS, citing privacy violations and anti-immigrant targeting.

Twenty States Challenge Federal Data Sharing

California has filed a lawsuit in federal court, leading a coalition of 19 other states in challenging the Trump administration’s decision to transfer sensitive Medicaid data to the Department of Homeland Security (DHS). The suit, filed in the Northern District of California, claims that millions of Americans’ protected health information was unlawfully handed over to federal immigration authorities, putting vulnerable communities at risk.

Attorney General Rob Bonta emphasized the seriousness of the allegations, noting this is the 28th legal action California has brought against the Trump administration in 23 weeks. “Millions of individuals’ health information was transferred without their consent, and in violation of federal law,” the complaint states. The data, which included names, addresses, Social Security numbers, and immigration status, was reportedly provided by the Centers for Medicare & Medicaid Services (CMS) to agencies such as U.S. Immigration and Customs Enforcement (ICE).

Privacy, Public Health, and Immigration Policy Collide

States like California, Illinois, and Washington allow non-U.S. citizens to enroll in Medicaid using only state funds. The lawsuit claims that by sharing this data, the federal government broke established privacy laws, including the Health Insurance Portability and Accountability Act (HIPAA) and the Administrative Procedure Act. “This isn’t about cutting waste or going after fraud,” Bonta argued. “This is about going after vulnerable people who entrusted the state and the federal government to help them access health care, a basic human right.”

Attorneys general from states including Arizona, Colorado, New York, and Michigan joined the suit, expressing concern that the data transfer would lead to mass disenrollment from Medicaid and the Children’s Health Insurance Program (CHIP) as families fear repercussions. The complaint argues that this could leave states and safety net hospitals to cover costs for emergency healthcare services, while public health suffers from reduced access to care, especially for childbirth and emergencies.

Federal Government Defends Oversight

The Trump administration maintains the transfer is legal and necessary for oversight. HHS spokesperson Andrew Nixon explained that CMS “is aggressively cracking down on states that may be misusing federal Medicaid funds to subsidize care for illegal immigrants.” He added, “This oversight effort—supported by lawful interagency data sharing with DHS—is focused on identifying waste, fraud, and systemic abuse. We are not only protecting taxpayer dollars—we are restoring credibility to one of America’s most vital programs.”

However, the states’ lawsuit insists that Congress itself extended federal funding for emergency Medicaid to all individuals, regardless of immigration status. Plaintiffs contend they already have systems in place to ensure eligibility and proper use of federal funds, and that federal involvement is creating confusion and fear among immigrant communities.

Bonta noted that California’s Medi-Cal program provides healthcare coverage for a third of the state’s population, including more than two million noncitizens. “The Trump Administration has upended longstanding privacy protections with its decision to illegally share sensitive, personal health data with ICE,” Bonta said. “In doing so, it has created a culture of fear that will lead to fewer people seeking vital emergency medical care.”

As the legal battle unfolds, the outcome will have far-reaching implications for the use of health data, state-federal relations, and the intersection of healthcare and immigration policy across the United States.