A federal judge has issued a temporary halt to a new Trump administration initiative that sought to use state-level Medicaid records to aid immigration enforcement, disrupting a policy that had only recently gone into effect.
In a notice circulated late Friday, the Michigan Department of Health and Human Services (MDHHS) told managed care organizations and health providers that individual Medicaid beneficiary data may not be shared with federal officials for immigration purposes until further order of the court. The communication followed a preliminary injunction that bars the U.S. Department of Homeland Security (DHS) from receiving any beneficiary-level information from Michigan’s Medicaid system. The injunction will remain in place at least until a December 9 hearing.
The litigation originated in August, when 20 Democratic attorneys general sued the federal government over an executive action requiring states and federal agencies to transmit Medicaid enrollment records to DHS to identify undocumented immigrants who may be subject to deportation. Although Michigan was not among the original plaintiffs, the judge’s ruling applies nationwide, temporarily freezing the data-sharing directive, writes Newsmax.
Supporters of the administration’s approach counter that undocumented immigrants are already barred from full Medicaid coverage (with limited exceptions for emergency medical services). Targeted data sharing, they argue, merely strengthens existing protections against fraud or improper enrollment, especially in states with expansive eligibility programs. The Trump administration has framed the measure as a commonsense extension of its immigration policy and a safeguard for taxpayers.
For now, implementation in Michigan has stopped. According to MDHHS, the state has suspended any pending transfers of beneficiary-level data that DHS had already begun requesting under the new federal rules. The department reassured providers that the state “remains in compliance with all federal requirements” and will issue further directives after next week’s hearing.
The upcoming proceeding will determine whether the preliminary injunction is extended, narrowed, or dissolved. A ruling against the government could complicate federal enforcement plans and embolden additional legal challenges in other domains involving health data and immigration law. A ruling in the administration’s favor, by contrast, could restart the flow of detailed patient information across state lines and intensify political backlash over Medicaid privacy.
Until the court issues a new order, Michigan health officials are barred from sharing the data and the legal and political stakes surrounding the December 9 hearing continue to grow.
