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Four states are suing HHS to block Medicaid work requirements set to kick in January 1. Oregon, Minnesota, New Mexico, and Washington argue CMS overstepped its constitutional authority and that the rules would drive up uninsurance rates and administrative costs. The lawsuit seeks to halt federal funding cuts for states that don't comply.
With less than 60 days until the January 1 implementation deadline, four state attorneys general — from Oregon, Minnesota, New Mexico, and Washington — have filed a federal lawsuit against HHS to block Medicaid work requirements. The requirements, passed as part of the GOP's "Big Beautiful Bill" in July 2025, mandate that Medicaid expansion enrollees complete 80 hours of work, volunteering, or schooling per month to keep their coverage.
The states argue that CMS lacked constitutional authority to impose the requirements and that the policy so fundamentally transforms Medicaid that it essentially creates a new program — a legal argument that has gained traction in prior court rulings. They're asking the court to declare funding cuts for non-compliant states unconstitutional and to issue both preliminary and permanent injunctions.
Key Takeaways:
Why it matters: With the clock ticking toward January 1, mounting legal challenges could delay or reshape how — and whether — Medicaid work requirements are enforced, with major implications for millions of low-income enrollees and state healthcare budgets.
