The Trump administration finalized an agreement to share the personal data of approximately 79 million Medicaid recipients with Immigration and Customs Enforcement (ICE), a move framed by officials as an effort to combat fraud but widely criticized as an infringement on privacy and a tactic aimed at targeting undocumented individuals.

The Data Transfer Agreement

According to documents obtained exclusively by the Associated Press, the Department of Homeland Security (DHS) and the Centers for Medicare and Medicaid Services (CMS) agreed to provide ICE with demographic and location data of Medicaid users. This data includes names, addresses, and ethnicities. The stated purpose is to assist ICE in identifying and tracking individuals suspected of being undocumented living within the U.S. The agreement stipulates that ICE will “receive identity and location information on aliens identified by ICE.”

Justification and Concerns

Health and Human Services assistant secretary, Tricia McLaughlin, explained that the initiative aims to “ensure that illegal aliens are not receiving Medicaid benefits that are meant for law-abiding Americans.” This justification has sparked considerable debate. Experts highlight that U.S. citizens are overwhelmingly responsible for entitlement fraud, with more than 90% of such cases involving U.S. citizens. Undocumented individuals, moreover, are generally only eligible for emergency health insurance coverage, not standard policies, making the claim of widespread fraud by this population dubious.

Restricted Access and Prior Efforts

Access to the CMS databases will be limited, with officials able to access the information only between 9 a.m. and 5 p.m., Monday through Friday, until September 9. This restriction appears designed to address concerns about indefinite data storage, but it doesn’s fully alleviate them. The move also comes after a similar, broader effort in June when the administration attempted to seize a mass of personal health information from citizens in states offering state-funded healthcare to undocumented residents. State officials challenged that action, arguing it would have a “chilling” effect on individuals seeking medical attention and would foster a culture of fear.

Wider Policy Context & Expert Reaction

This data sharing agreement is part of a broader trend of increased immigration enforcement and significant cuts to social programs. The Trump administration’s “One Big, Beautiful Bill” signed into law on July 4th, includes substantial cuts to Medicaid and the Children’s Health Insurance Program (CHIP) funding over the next decade – impacting an estimated 11 million Americans and potentially harming rural hospitals. The bill also reduces funding for the Supplemental Nutrition Assistance Program (SNAP), affecting 5 million adults and children, and allocates $108 billion to bolster immigration enforcement, including border wall construction, expanded detention facilities, and logistics within the Department of Homeland Security and Department of Justice.

Elizabeth Laird, director of equity in civic technology for the Center for Democracy and Technology, sharply criticized the data-sharing agreement. “By turning over some of our most sensitive healthcare data to ICE, Health and Human Services has fundamentally betrayed the trust of almost 80 million people. This jaw-dropping development proves that the Administration’s claim of using this information to prevent fraud is a Trojan horse that instead will primarily advance their goal of deporting millions of people.”

Laird further emphasized the low incidence of fraud committed by undocumented individuals, reiterating, “The results of this decision will be devastating. It will sink trust in government even lower, force individuals to choose between life-saving care and turning over data to immigration authorities, and erode the quality and effectiveness of government services.”

The agreement represents a significant expansion of government surveillance and raises serious questions about the privacy of millions of Americans, particularly those from vulnerable and marginalized communities. It also highlights the ongoing tension between efforts to enforce immigration laws and the protection of fundamental rights and access to vital healthcare services.