States Challenge Trump Administration's Medicaid Work Requirements in Lawsuit Led by Massachusetts Attorney General Andrea Joy Campbell
A coalition of 26 states, led by Massachusetts Attorney General Andrea Joy Campbell, has filed a lawsuit challenging the Trump Administration's implementation of new Medicaid work requirements under the One Big Beautiful Bill Act. The lawsuit contests an interim final rule issued by the U.S. Department of Health and Human Services and Centers for Medicare & Medicaid Services on June 3, 2026. Medicaid, a crucial healthcare program for low-income individuals, is jointly funded by states and the federal government, with the federal government covering at least 50% of the costs. The lawsuit argues that the new rule disregards Congress's exclusions for individuals with serious illnesses and disabilities, making it harder for vulnerable individuals to qualify for exemptions from the work requirements and maintain Medicaid coverage.
The coalition is seeking to block the provisions of the interim final rule and ultimately have them struck down by the court. States have already invested significantly in implementing the law based on earlier guidance, and the sudden changes by CMS pose financial risks for non-compliance. The lawsuit aims to protect Medicaid recipients and prevent strain on healthcare systems. The interim final rule introduces administrative burdens that could lead to eligible individuals losing health coverage due to paperwork and reporting requirements, disregarding evidence and failing to provide clear guidance to states. Past Medicaid work requirement programs have shown that these administrative hurdles result in eligible individuals losing coverage, increasing costs and straining state Medicaid programs.
States, including Massachusetts, have raised concerns about last-minute changes to CMS guidance, warning of disruptions and increased implementation costs. The coalition alleges that the interim final rule violates the Administrative Procedure Act, the Medicaid Act, and the U.S. Constitution. The lawsuit was co-led by California Attorney General Rob Bonta, Massachusetts Attorney General Andrea Joy Campbell, and New Jersey Attorney General Jennifer Davenport, with the support of other states' attorneys general and governors. The coalition is urging the court to block the unlawful provisions of the rule to safeguard Medicaid recipients and prevent unnecessary strain on healthcare systems.
In conclusion, the coalition of states, led by Massachusetts Attorney General Andrea Joy Campbell, is challenging the Trump Administration's implementation of new Medicaid work requirements through a lawsuit that aims to protect vulnerable individuals and prevent disruptions in healthcare coverage. The lawsuit contests an interim final rule that disregards Congress's exclusions for individuals with serious illnesses and disabilities, introducing administrative burdens that could lead to eligible individuals losing coverage. The coalition seeks to have the provisions of the rule blocked and ultimately struck down to safeguard Medicaid recipients and prevent strain on healthcare systems.