Michigan Attorney General Joins Multistate Lawsuit Against Trump on Health Data Sharing

Key Takeaways

• On July 1–2, 2025, 20 states sued Trump administration over Medicaid data sharing with DHS and ICE.
• States argue data-sharing violates Medicaid Act, HIPAA, risking privacy and health access for millions.
• Lawsuit seeks to block data transfers and ICE use of Medicaid info for immigration enforcement.

On July 2, 2025, Michigan Attorney General Dana Nessel joined a group of at least 20 states in a major lawsuit against the Trump administration. The lawsuit, filed in the U.S. District Court for the Northern District of California, challenges the federal government’s decision to share the personal health data of millions of Medicaid enrollees with the Department of Homeland Security (DHS), which includes Immigration and Customs Enforcement (ICE). This legal action marks a significant moment in the ongoing debate over privacy, immigration enforcement, and access to healthcare in the United States 🇺🇸.

What Happened and Why It Matters

The lawsuit centers on a recent move by the Trump administration to transfer large amounts of Medicaid data—including names, addresses, phone numbers, and sensitive health information—to DHS. This data covers millions of people, including noncitizens and their family members. The states argue that this transfer violates federal privacy laws and puts the health and safety of their residents at risk.

Key Details at a Glance

• Who: Michigan Attorney General Dana Nessel, along with attorneys general from at least 19 other states, led by California Attorney General Rob Bonta.
• What: Suing the Trump administration for sharing Medicaid health data with DHS and ICE.
• When: Data transfer discovered on June 13, 2025; lawsuit filed July 1–2, 2025.
• Where: U.S. District Court for the Northern District of California.
• Why: States claim the data-sharing violates federal privacy laws and could harm millions of people.
• How: The lawsuit seeks to block further data transfers and prevent ICE from using the shared data for immigration enforcement.

Let’s break down the background, legal arguments, and what this means for immigrants, families, and the healthcare system.

How the Data Sharing Came to Light

On June 13, 2025, state officials learned through news reports that the U.S. Department of Health and Human Services (HHS) had transferred Medicaid data files to DHS. These files included personal health information for millions of people enrolled in Medicaid, a government health insurance program for low-income individuals and families.

The data transfer was not widely known to state officials or the public until these reports surfaced. Many states were surprised and concerned, especially since the data included information about noncitizens and their family members. In Michigan alone, Medicaid and the Children’s Health Insurance Program (CHIP) cover about 2.6 million people—over a quarter of the state’s population, including more than a million children.

The Lawsuit: What States Are Arguing

The coalition of states, including Michigan, California, New York, Oregon, and others, filed their lawsuit on July 1–2, 2025. Their main arguments are:

• Violation of Federal Law: The states claim the Trump administration broke the law by sharing Medicaid data for purposes not allowed under the Medicaid Act and the Health Insurance Portability and Accountability Act (HIPAA). These laws are designed to protect personal health information and limit how it can be used.
• Breach of Trust: State officials argue that sharing this data with immigration authorities undermines public trust in government health programs. People may become afraid to seek medical care if they think their information could be used against them or their families.
• Harm to Public Health: The lawsuit warns that immigrants and their families may avoid enrolling in Medicaid or taking their children to the doctor out of fear. This could lead to worse health outcomes and higher costs for hospitals and states, which are required by law to provide emergency care to everyone, regardless of immigration status.

Michigan Attorney General Dana Nessel stated, “Our personal healthcare data is exactly that: personal. It should remain confidential and be accessible only to agencies directly involved with Medicaid. This unlawful move by the Trump Administration to grant access to unrelated entities will undoubtedly harm the health, privacy, and well-being of all Michiganders. I remain committed to protecting our privacy rights.”

What the Trump Administration Says

The Trump administration defends the data-sharing, saying it is legal and necessary to make sure Medicaid benefits only go to people who are eligible. Officials argue that using this data helps prevent fraud and ensures taxpayer money is spent correctly.

However, states argue that the way the data was shared goes far beyond what is needed to run the Medicaid program. They say it opens the door for Immigration and Customs Enforcement to use health information for immigration enforcement, which is not allowed under current law.

Legal and Policy Background

Medicaid Act and HIPAA

• Medicaid Act (1965): This law created Medicaid to help low-income people get medical care. It includes strict rules about keeping personal health information private.
• HIPAA (1996): This law protects people’s health information and limits when it can be shared. Usually, health data can only be shared for medical treatment, payment, or certain government functions—not for immigration enforcement.

Previous Trends

This is not the first time the Trump administration has tried to use government databases to find and deport undocumented immigrants. In recent years, officials have looked at data from programs like SNAP (food stamps) and the IRS. These efforts have led to more lawsuits from states and advocacy groups, who argue that such actions violate privacy and hurt public trust.

What’s at Stake for Michigan and Other States

Impact on Healthcare Access

One of the biggest concerns is that immigrants and their families will stop using Medicaid or avoid signing up for it. This is sometimes called a “chilling effect.” If people are afraid that their information will be shared with ICE, they may not get the medical care they need—even if they are eligible for it.

Oregon Attorney General Dan Rayfield explained, “Parents may choose not to take their kids to the doctor because they’re afraid of what may happen. We need to protect the privacy and dignity of every person who calls Oregon home.”

Privacy and Trust

When people sign up for Medicaid, they trust that their information will be kept private. If that trust is broken, it can have long-lasting effects. People may avoid government programs altogether, which can lead to worse health and higher costs for everyone.

Administrative Challenges

States now face extra work to make sure they follow both federal and state privacy laws. They also have to deal with the fallout if fewer people enroll in Medicaid, which can affect funding and public health.

The Legal Process: Step by Step

1. Data Request: HHS asked states for Medicaid data, sometimes saying it was for routine audits.
2. Data Transfer: HHS sent the data to DHS, which then made it available to ICE.
3. Discovery: States found out about the transfer through news reports on June 13, 2025.
4. Legal Action: States filed the lawsuit on July 1–2, 2025, to stop further transfers and block ICE from using the data for immigration enforcement.

The lawsuit asks the court to:

• Block any new transfers of Medicaid data to DHS or ICE.
• Stop ICE from using the data that has already been shared for immigration enforcement.

As of July 3, 2025, the case is still in court, and no order has been issued to stop the data transfers or their use by ICE.

What Legal Experts and Advocates Say

Many legal scholars and privacy advocates believe the data-sharing violates long-standing protections for health information. These protections are meant to make sure people feel safe getting medical care, without worrying that their information could be used against them.

California Attorney General Rob Bonta said, “The Trump Administration has upended longstanding privacy protections with its decision to illegally share sensitive, personal health data with ICE. In doing so, it has created a culture of fear that will lead to fewer people seeking vital emergency medical care.”

Broader Implications for Immigrants and Families

Chilling Effect on Enrollment

If immigrants and their families are afraid to sign up for Medicaid, they may go without needed care. This can lead to:

• Worse health outcomes for children and adults.
• Higher costs for hospitals, which must provide emergency care to everyone.
• Increased public health risks if people avoid treatment for contagious diseases.

Erosion of Trust

When people lose trust in government programs, it can be hard to rebuild. This can affect not just Medicaid, but other programs that help families in need.

Impact on State Budgets

If fewer people enroll in Medicaid, states may lose federal funding. At the same time, they may face higher costs for emergency care and public health services.

What Happens Next?

The lawsuit is still pending in federal court. It could take months or even years for a final decision. The outcome will likely set an important precedent for how personal health data can be used in the United States 🇺🇸, especially when it comes to immigration enforcement.

Some members of Congress have called for hearings or new laws to make the rules clearer. There is also a chance that the court could issue an order to stop the data-sharing while the case is being decided.

Official Resources and Where to Learn More

• Michigan Attorney General’s Office: For official statements and updates, visit michigan.gov/ag.
• California Attorney General’s Office: For press releases and legal documents, see oag.ca.gov.
• Oregon Department of Justice: For more information, go to doj.state.or.us.

For readers who want to understand more about Medicaid privacy protections, the official Medicaid website provides detailed information on program rules and privacy rights.

Summary Table: Key Facts

What Should Immigrants and Families Do Now?

• Stay Informed: Follow updates from your state attorney general’s office and trusted news sources.
• Know Your Rights: Medicaid and CHIP have strong privacy protections. If you have questions, contact your state’s Medicaid office or a legal aid organization.
• Seek Help if Needed: If you are worried about your health information being shared, talk to a trusted healthcare provider or legal expert.

The Bigger Picture

This lawsuit highlights the ongoing tension between immigration enforcement and the need to protect personal privacy and public health. As reported by VisaVerge.com, the outcome of this case could shape how government agencies handle sensitive data for years to come. It also raises important questions about who can access personal information and for what reasons.

The case is a reminder that decisions made in Washington, D.C. can have real effects on families in Michigan and across the country. Whether you are an immigrant, a healthcare provider, or simply someone who cares about privacy, the results of this lawsuit will be important to watch.

Final Thoughts

The legal battle led by the Michigan Attorney General and other states against the Trump administration’s data-sharing policy is about more than just paperwork. It’s about protecting the privacy, health, and trust of millions of people. As the case moves through the courts, its outcome will have lasting effects on Medicaid, immigration enforcement, and the relationship between government and the people it serves.

For now, the best step for individuals is to stay informed, know your rights, and reach out for help if you have concerns about your health information or your family’s safety. The story is still unfolding, and its impact will be felt for years to come.

Learn Today

Medicaid → A government health insurance program for low-income individuals, established in 1965 with strict privacy protections.
HIPAA → Health Insurance Portability and Accountability Act; federal law protecting personal health information privacy.
DHS → Department of Homeland Security; oversees U.S. immigration enforcement agencies including ICE.
ICE → Immigration and Customs Enforcement; federal agency enforcing immigration laws and conducting deportations.
Data Sharing → Transfer of personal data between government agencies, often regulated to protect privacy.

This Article in a Nutshell

Twenty states, led by Michigan and California, sued to stop Trump’s illegal Medicaid data sharing with ICE. The case challenges violations of federal privacy laws protecting immigrants’ health information and aims to safeguard public trust and healthcare access amidst enforcement concerns.
— By VisaVerge.com