A coalition comprising 24 states and Washington, D.C., initiated legal action against the President Trump administration on Monday, contesting a new policy that would significantly broaden federal oversight of the Temporary Assistance for Needy Families (TANF) program. The lawsuit, filed in federal court, seeks to block the implementation of a policy that would grant federal authorities increased access to recipients’ personal information for the purpose of eligibility reviews and compliance checks. The states argue that this expansion of data-sharing authority infringes upon federal privacy protections and exceeds the scope of federal power over state-administered programs.
"Instead of helping families struggling with the rising cost of living, this administration is trying to turn antipoverty programs against the people they’re supposed to serve." — Letitia James, New York Attorney General
The challenged policy stems from a June 23 notice issued by the Administration for Children and Families (ACF), an agency within the Department of Health and Human Services. This notice outlined updates to the TANF system of records, slated to take effect on August 11. These updates would allow federal agencies to access a range of sensitive data points, including Social Security numbers, immigration status, addresses, marital status, and parentage details of TANF recipients.
Led by New York, the coalition of states contends that Congress granted states broad authority in administering TANF programs when it was established in 1996, replacing Aid to Families with Dependent Children. They argue that federal oversight was intended to be limited to ensuring states meet statutory requirements, not to expand direct federal access to individual recipient data. The lawsuit specifically alleges violations of the federal Privacy Act, the Administrative Procedure Act, and the Constitution’s spending clause, asserting that the policy improperly expands federal control over a program primarily managed by states.
President Trump’s administration has consistently defended the policy as a crucial component of a broader initiative to enhance accountability and integrity within federal benefit programs. Officials emphasize the need for robust verification measures to prevent fraud, waste, and improper payments, thereby ensuring that taxpayer-funded benefits are distributed only to those who genuinely qualify. The TANF program allocates over $16 billion annually to states, Washington, D.C., territories, and tribal governments. The administration has highlighted concerns that some states may not have adequately verified recipients' eligibility, particularly regarding citizenship and immigration status rules.
Earlier this year, the administration established a task force dedicated to identifying potential fraud and ensuring that federal benefits are not disbursed to ineligible individuals. This policy change concerning TANF data access is presented as another step in that comprehensive effort. The Administration for Children and Families previously stated that the updated system would enable it to "ensure compliance with all TANF program requirements" and verify recipient eligibility more effectively.
New York Attorney General Letitia James voiced strong criticism of the administration's move, stating, "Instead of helping families struggling with the rising cost of living, this administration is trying to turn antipoverty programs against the people they’re supposed to serve." The states further argue that expanding federal access to TANF records could inadvertently deter eligible families from applying for assistance. This concern stems from fears among potential applicants that their sensitive information, particularly immigration status, could be shared with immigration authorities or other federal agencies, despite their eligibility for assistance.
Beyond privacy concerns, the lawsuit also claims that the new policy could impose significant additional burdens on states. State agencies would be required to respond to expanded federal reviews and update their procedures for handling confidential information, potentially diverting resources from direct assistance and program administration.
TANF provides essential funding for a variety of services, including cash assistance, childcare support, employment programs, and emergency aid for low-income families. According to federal data cited in the lawsuit, more than 2 million individuals received TANF assistance in 2025, with nearly 1.5 million of them being children. California and New York accounted for the largest numbers of recipients.
The lawsuit underscores ongoing tensions between Democratic-led states and the President Trump administration concerning federal oversight of social welfare programs. The coalition is petitioning the federal court to declare the policy unlawful and to issue an injunction preventing the federal government from implementing these changes for the states involved in the case. Federal officials have not yet issued a public comment directly addressing the lawsuit.
