Full Breakdown
25 States and D.C. Sue Trump Administration Over New Medicaid Work Requirements
7/2/2026, 4:04:21 PM
Lawsuit Over New Medicaid Work Rule
On July 1, 2026, a coalition of 25 states and the District of Columbia filed a federal suit challenging an Interim Final Rule (IFR) issued by the Centers for Medicare & Medicaid Services (CMS) in early June. The complaint names CMS administrator Dr. Mehmet Oz and Health and Human Services secretary Robert F. Kennedy Jr. as defendants and includes California, Connecticut, Delaware, the District of Columbia, Hawaii, Illinois, Maine, Maryland, Massachusetts, New Jersey, New York, Oregon, Rhode Island, Vermont, Washington, Arizona, Colorado, Michigan, Minnesota, Nevada, New Mexico, North Carolina, Pennsylvania, Virginia, Wisconsin and Kentucky. Plaintiffs argue the rule unlawfully narrows Medicaid access by imposing work, volunteer or education requirements on able-bodied enrollees and by adding paperwork for exemption claims.
Background of the Interim Final Rule
The IFR, presented as a fraud-prevention measure, requires able-bodied Medicaid recipients to work at least 20 hours weekly, volunteer, or attend school while receiving benefits. Automatic exemption for severe medical conditions is replaced by a documentation requirement. Starting in 2028, enrollees without immediate records may submit only one self-attestation, signed under penalty of perjury, whereas earlier guidance allowed multiple attestations.
Projected Impact on Coverage
CMS projects that 2.3 million enrollees could lose Medicaid in the rule’s first year. An additional 7 % of working or exempt participants may lose benefits due to confusing paperwork, strict deadlines or missing documentation. The single-submission self-attestation further narrows the safety net for those lacking immediate records.
Legal Request
Plaintiffs argue the IFR violates federal law and congressional intent. They seek a temporary stay and a preliminary injunction before the August 31 deadline for mailing Medicaid notices.
Official Statements & Responses
No comment was received from the White House or the Department of Health and Human Services when approached for comment.
Conflicting Reports & Gaps
The suit cites only CMS’s enrollment loss estimates; no other quantitative data are presented.
Criticism and Cost Concerns
The suit argues the rule threatens people with disabilities, cancer patients and others with serious health conditions by risking essential care. It also warns that states must replace automated eligibility systems with costly manual reviews, creating significant additional expenditures.
Verbatim Quotes
- “If you can work, you should get up and work,” — Dr. Mehmet Oz, CMS Administrator
- “I’m here because I love Medicaid.” — Dr. Mehmet Oz, CMS Administrator
- “If we put guardrails around these programs, we’ll allow them to thrive.” — Dr. Mehmet Oz, CMS Administrator
- “People with disabilities, patients in the middle of cancer treatment, or those struggling with another serious or complex health condition, shouldn’t be at risk of losing the care that helps maintain their health,” — Plaintiffs’ lawsuit
What’s Next
The court will consider the injunction request before the August 31 notice deadline. A favorable ruling could block enforcement slated for January 2027; a denial would allow the work requirements to proceed, potentially affecting millions of Medicaid recipients.
