On July 1, 2025, California led a multistate coalition in filing a lawsuit against the Trump Administration arguing that the mass transfer of Medicaid data violates the law and asking the court to block any new transfer or use of this data for immigration enforcement purposes. The lawsuit highlighted that the Trump Administration’s illegal actions are creating fear and confusion leading noncitizens and their family members to disenroll, or refuse to enroll, in emergency Medicaid for which they are otherwise eligible, leaving states and their safety net hospitals to foot the bill for federally mandated emergency healthcare services. In the limited preliminary injunction order, the court ruled that the Trump Administration’s actions were likely arbitrary and capricious and rulemaking in violation of the Administrative Procedure Act.

“The Trump Administration’s move to use Medicaid data for immigration enforcement upended longstanding policy protections without notice or consideration for the consequences. It sowed a culture of fear that threatens our Medicaid system, caused chaos for states and providers, and created a chilling effect for patients seeking vital emergency medical care. Today’s preliminary injunction rightfully blocks any sharing of California’s Medicaid data for immigration enforcement for now — and ensures any of the data that’s already been shared is not being used for immigration enforcement purposes. As the President continues to overstep his authority in his inhumane anti-immigrant crusade, this is a clear reminder that he remains bound by the law.” – AG Bonta