❓WHAT HAPPENED: California and 19 other states sued the Trump administration over the transfer of Medicaid data to the Department of Homeland Security (DHS) for immigration enforcement purposes.
👤WHO WAS INVOLVED: California Attorney General Rob Bonta, DHS, the Department of Health and Human Services (HHS), President Donald J. Trump, DHS and HHS Secretaries Kristi Noem and Robert F. Kennedy Jr.
📍WHEN & WHERE: July 2025, U.S. District Court, Northern District of California
💬KEY QUOTE: “This isn’t about cutting waste or going after fraud. This is about going after vulnerable people,” claims Bonta.
🎯IMPACT: Lawsuit challenges federal surveillance using state Medicaid data, with national implications for immigration and healthcare policy.
A coalition of 20 states led by Governor Gavin Newsom’s California filed a federal lawsuit this week against the Trump administration, accusing the Departments of Health and Human Services (HHS) and Homeland Security (DHS) of unlawfully sharing Medicaid data with immigration enforcement officials. The lawsuit, filed in the Northern District of California, alleges millions of individuals’ health information was transferred without consent, supposedly violating privacy laws.
According to the complaint, the Centers for Medicare & Medicaid Services handed over data from state-run Medicaid programs—including those in California, Illinois, and Washington—to DHS and U.S. Immigration and Customs Enforcement (ICE). This data reportedly included names, addresses, immigration status, Social Security numbers, and claims records, to help prevent federal funding from being awarded to illegal aliens and ineligible noncitizens.
California Attorney General Rob Bonta claimed the Trump administration is using Medicaid as a weapon to enforce anti-immigration policies, stating, “They’re threatening the personal health data of 78.4 million individuals who are enrolled in Medicaid and CHIP for their mass surveillance and federal immigration enforcement plans.” Bonta emphasized that this was the 28th lawsuit California has filed against the Trump administration in just 23 weeks.
HHS defended its actions, with spokesman Andrew Nixon stating the interagency data sharing was lawful and aimed at preventing misuse of federal Medicaid funds. “This oversight effort… is focused on identifying waste, fraud, and systemic abuse,” Nixon said, adding that emergency Medicaid eligibility remains legally intact for illegal immigrants as authorized by Congress.
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