A coalition of 20 state attorneys general has taken the Trump administration to court, claiming that the transfer of private Medicaid data to the Department of Homeland Security (DHS) is a blatant violation of privacy laws. The charge? The data is allegedly being weaponized for mass deportations and expansive immigration enforcement efforts.
Filed on July 1 in the Northern District of California, the lawsuit, spearheaded by California Attorney General Rob Bonta, argues that this mass data transfer contravenes various federal health privacy laws, including the Health Insurance Portability and Accountability Act (HIPAA) and the Privacy Act, among others. Think of it as a game of legal dodgeball where the stakes are personal health information.
The attorneys general are not just throwing a tantrum; they’re demanding the courts declare the data handover unauthorized and illegal. They want to halt any future transfers of Medicaid information to DHS—or any other federal agency—and to ensure that existing data isn’t exploited for immigration crackdowns or surveillance.
Bonta provides a stark warning: “The Trump Administration has shattered longstanding privacy protections by inappropriately sharing sensitive health information with ICE. This creates a climate of fear, discouraging individuals from seeking critical emergency medical care.” He insists they’re going to court to keep Medicaid data out of the hands of immigration enforcement.
As of January 2025, Medicaid and the Children’s Health Insurance Program had approximately 78.4 million enrollees. The lawsuit also notes that while some data sharing is standard for eligibility verification, California, Illinois, and Washington state were recently shocked to discover that their Medicaid files were shared en masse with DHS—potentially compromising millions of individuals’ privacy.
These states have provisions allowing undocumented immigrants to enroll in Medicaid, which is funded solely by state taxpayers. The lawsuit emphasizes that the data shared was not anonymized; it included sensitive details such as immigration status and personal addresses.
The plaintiffs point out that the DHS justified its actions by claiming it needed to ensure Medicaid benefits went only to those legally entitled to them. But the attorneys general are skeptical, alleging that this data sharing is part of a broader agenda for “mass deportations and extensive surveillance.”
The states participating in this legal battle include 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 joining California in this legal fray.
In response, HHS spokesperson Andrew Nixon defended the department’s actions, insisting they were within legal bounds and necessary to safeguard Medicaid benefits for lawful recipients. Dr. Mehmet Oz, head of the Centers for Medicare and Medicaid Services, noted that nearly $14 billion in fraud and abuse in Medicaid was identified, which allegedly includes funds misappropriated by individuals wrongfully enrolled in the program.
Yet, the context surrounding the data transfer raises eyebrows and skepticism regarding the government’s motives, with the attorneys general arguing that the true aim is not merely to curb fraud but to facilitate an anti-immigrant agenda.
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