CHICAGO — Illinois Attorney General Kwame Raoul has joined a coalition of 19 other attorneys general in a new lawsuit against the Trump administration, aiming to block the federal government’s use of Medicaid data for immigration enforcement.
The suit, announced Tuesday, seeks to stop the Department of Homeland Security (DHS) from accessing health records transferred from the Department of Health and Human Services (HHS) that could be used to track or deport immigrants enrolled in Medicaid programs.
Lawsuit Targets Federal Data Transfer
In June 2025, the HHS confirmed that it transferred millions of state Medicaid data files to DHS. These files include personal health records of individuals living in states like Illinois, California, Washington, and Washington, D.C., all of which allow non-citizens to enroll in Medicaid using state-funded resources.
The Chicago Sun-Times reports that the Biden administration had previously reversed similar practices in 2021, but the Trump-aligned leadership at DHS reinstated them earlier this year.
A spokesperson for HHS stated that the transfer was intended “to ensure that Medicaid benefits are reserved for individuals who are lawfully entitled,” but declined to explain how DHS would use the information.
Illinois AG: Policy Will Have “Chilling Effect”
AG Raoul called the move not just unlawful, but harmful to public health. “This decision will likely have a devastating effect on Illinois’ safety-net hospitals and community-based health care providers,” he said. “It will discourage vulnerable populations from enrolling in programs they are legally eligible for.”
Illinois allows certain noncitizen residents, including undocumented children and seniors, to access state-funded Medicaid coverage. Advocates worry that fear of data misuse could deter enrollment, even among those legally entitled to benefits.
Medicaid Cuts Looming Under Trump Proposal
This legal fight comes amid broader concerns over Trump’s proposed $1.2 trillion domestic spending cuts, which include steep reductions to Medicaid and SNAP (food stamp) programs.
If passed, states would be required to contribute up to 25% of SNAP benefit costs. In Illinois alone, more than 1.8 million residents rely on SNAP, with an average benefit of $157 per person per month, according to federal data.
Such cost shifts could pressure Illinois lawmakers to cut services or reduce eligibility — especially if enrollment declines due to fear of enforcement.
A Pattern of Lawsuits Against Trump
This marks the 21st lawsuit Illinois has joined against Trump-era federal policies since 2023. Other recent actions include legal challenges to:
Raoul has been vocal about protecting access to healthcare and resisting federal overreach. “We will continue to use every tool to fight back against unlawful orders,” he said in the statement.
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