Judge denies states’ motion to postpone Medicaid work requirement

by | Jul 31, 2026 | Health

Judge denies states’ motion to postpone Medicaid work requirement

A federal judge in Massachusetts rejected a motion by 26 states seeking to delay implementation of Medicaid work requirements that were detailed in June and are scheduled to begin Jan. 1. U.S. District Judge Richard Stearns ruled against the states’ request for a preliminary injunction to pause the rollout of the requirements.

The states had argued they lack sufficient staffing and capacity to implement the changes within the required timeframe, contending the situation would “cause harm and chaos.” They also raised legal challenges under the Administrative Procedure Act, which governs how federal agencies must implement policy changes. Additionally, the states claimed the Centers for Medicare and Medicaid Services narrowed categorical exclusions for vulnerable Medicaid recipients in ways that conflicted with prior guidance they had relied upon when planning implementation.

Federal attorneys defended the requirements by noting that Congress granted authority for the work requirement through legislation passed last year. They also stated they had appropriately considered impacts related to how “medically frail” status would be defined under the new rules.

In his decision, Judge Stearns acknowledged the complexity of the case but found that the compressed timeline was set by Congress through the legislation rather than by CMS itself. He wrote that it remained unclear how much of the implementation burden could fairly be attributed to the federal agency. The judge added he was not persuaded the states had demonstrated their expenses would be totally unrecoverable.

The states must notify Medicaid recipients by Aug. 31 about how the changes may affect them. Although the judge denied the preliminary injunction, he noted the case raises significant legal questions about Congress’s delegation of interpretative authority and whether the federal agency faithfully executed congressional intent. The order was filed without prejudice, allowing the case to proceed to a fuller hearing on its merits, which Stearns intends to schedule before the Jan. 1 implementation date.

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