Blue states file lawsuit over ‘narrow’ Medicaid work requirement exemption

By Stephanie Akin | AZ Capitol Times

Key Points:
  • Coalition of 24 attorneys general sues Trump administration
  • Lawsuit challenges federal rule limiting Medicaid work exemptions
  • The lawsuit seeks to block the rule and ultimately have it struck down

A coalition of 24 attorneys general, including Attorney General Kris Mayes, and two governors sued the Trump administration on Monday to block a federal rule limiting exemptions to a new federal Medicaid work requirement. 

The directive issued in June would “dramatically narrow” exclusions for medically vulnerable people under the One Big Beautiful Bill Act and sow “harm and chaos” in the states by forcing them to scuttle expensive and complex plans they had spent months devising based on regular communication with federal officials, the lawsuit filed in the U.S. District Court in Massachusetts alleges. 

“States had already made substantial investments relying on the plain language of the law and CMS’s prior guidance and now face the risk of harsh financial penalties for noncompliance with the Medicaid work requirements interim final rule,” Colorado Attorney General Phil Weiser said in a statement. 

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