Democratic-Led States Sue to Block TANF Data Sharing

A coalition of more than 20 Democratic-led states and the District of Columbia filed a federal lawsuit in Washington on August 3, 2026, to block a new Trump administration policy. The contested rule, announced in June by the Administration for Children and Families (ACF), allows the federal government to share records of families receiving Temporary Assistance for Needy Families (TANF) benefits—including Social Security numbers and addresses—with other agencies, such as the U.S. Department of Homeland Security, to verify immigration status.

The lawsuit argues that the policy violates the U.S. Constitution and the Administrative Procedure Act, asserting that states are legally responsible for verifying applicant eligibility. The ACF maintains the data-sharing initiative, scheduled to take effect on August 11, is necessary to prevent fraud and ensure citizenship and immigration status are verified before benefits are distributed.

State leaders characterize the move as an attempt to weaponize antipoverty programs. New York Attorney General Letitia James stated the administration is trying to turn these programs against the people they serve, while Maryland Attorney General Anthony Brown argued the policy unlawfully exposes private data to intimidate vulnerable families. This legal challenge follows a previous court victory where a judge blocked the federal government from withholding TANF funds from Democratic-led states over similar immigration concerns.