Twenty-five Democrat-led states sued the Trump administration Sunday over its directives implementing Medicaid work requirements, arguing the rules set exemptions for sick and disabled enrollees too narrowly and were issued in violation of the Administrative Procedure Act.
The coalition, representing half the country, contends the federal government failed to follow required rulemaking procedures and that the resulting exemption standards would strip coverage from enrollees who are genuinely too ill to work.
Medicaid covers roughly 80 million low-income Americans. The work-requirement rules, if upheld, would require many adult enrollees to document employment, job training, or community service to retain coverage.
Plaintiffs argue the administration did not adequately account for the practical barriers facing chronically ill and disabled enrollees when it drafted the exemption criteria, a deficiency they say renders the directives unlawful on their face.
The litigation lands ahead of 2026 midterms in which Medicaid access has emerged as a top-tier issue in swing states across the Midwest and Sun Belt, where enrollment numbers are high and cuts would be visible quickly.
Federal district court hearings on preliminary injunction motions are expected within weeks. A ruling blocking implementation before the rules take effect would forestall coverage losses pending a full merits review.