Lawmakers and CMS officials are raising serious concerns about the legality of the Trump administration's recent data-sharing agreement, which involves accessing Medicaid information and could discourage immigrants from seeking emergency medical care.

The lawsuit warns that such data sharing could lead to reduced enrollment in emergency Medicaid programs, negatively impacting public health and increasing costs for states and hospitals.

This legal challenge comes amid broader federal efforts to cut Medicaid and other social programs, with recent legislation aiming to reduce benefits and impose work requirements, further threatening vulnerable populations.

California Attorney General Rob Bonta described the move as a harmful attempt to undermine the health and safety of vulnerable populations, emphasizing that sharing personal health data without proper notice or consent is unlawful.

Legal experts and privacy advocates highlight that the agreement potentially breaches laws like HIPAA and the Privacy Act, and that HHS has not adequately addressed these concerns.

California, along with 18 other states including New York and Colorado, has filed a lawsuit against the federal government, arguing that the data sharing violates multiple laws such as the Privacy Act, HIPAA, and the Administrative Procedures Act.

The agreement, first reported by the Associated Press, includes sensitive personal information like addresses, Social Security numbers, and ethnicity, raising alarm over privacy violations and potential misuse.

The controversy is compounded by internal government emails revealing disagreements among officials about whether further consultation with the Department of Justice was necessary before proceeding, and concerns that the move violates federal privacy laws.

California Attorney General Bonta and other state officials have called for the destruction of any data already shared, citing fears that individuals may avoid medical care due to fears of being targeted by ICE.

Privacy advocates and public health experts warn that weaponizing health data could lead to adverse health outcomes, eroding trust in government institutions and discouraging at-risk populations from seeking care.

Critics argue that the data sharing represents an invasion of privacy and a betrayal of public trust, especially since most entitlement fraud is committed by U.S. citizens, not immigrants.