26 states sue Trump administration over final Medicaid work requirements rule

Twenty-six states, led by New York, Massachusetts, and Wisconsin, filed a lawsuit challenging the CMS final rule that allows states to implement Medicaid work requirements. The complaint, filed in a New York federal court, argues the rule violates the Administrative Procedure Act and the Social Security Act’s goal of providing medical assistance. This follows the rule's publication on June 29, which prompted immediate pushback. The legal challenge could delay or block implementation in participating states, affecting enrollment and practice patient mixes. Monitor the docket for the Northern District of New York for preliminary injunction motions, which could come within weeks.