States sue to block feds from sharing personal data of millions who receive social service benefits

by | Aug 3, 2026 | Top Stories

States sue to block feds from sharing personal data of millions who receive social service benefits

A coalition of more than 20 states and the District of Columbia filed a federal lawsuit in Washington on Monday challenging the Trump administration’s efforts to expand access to personal data held by administrators of the Temporary Assistance for Needy Families program. The states seek to prevent implementation of a new rule that would permit sharing of sensitive information including immigration status, Social Security numbers, and other identifying details with federal agencies or potentially private entities.

The action represents the latest chapter in an ongoing dispute between state governments and federal authorities regarding oversight of the assistance program. The Trump administration has intensified scrutiny of various public benefit programs as part of broader efforts to identify and prevent potential fraud. Earlier this year, a federal judge blocked an attempt by the administration to withhold funding for the Temporary Assistance for Needy Families program and related subsidy initiatives from several states, following assertions that the states may have provided benefits to ineligible recipients. Officials later characterized the funding restriction effort as a response to reports concerning possible fraudulent distribution.

The Temporary Assistance for Needy Families program distributes more than $16 billion annually in grants to states, the District of Columbia, and tribal governments, which then exercise considerable discretion in deploying these funds toward cash assistance, workforce development, and other support services for economically disadvantaged families. The lawsuit was joined by officials from Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, Oregon, Rhode Island, Vermont, Virginia, Washington, and Wisconsin, as well as the governors of Kentucky and Pennsylvania.

New York Attorney General Letitia James stated that the administration’s approach prioritizes enforcement measures over substantive support for struggling families facing economic pressures. The federal Administration for Children and Families, which oversees the program, declined to provide comment on the litigation.

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