A coalition of 24 states and Washington, D.C., filed a lawsuit against the Trump administration Monday challenging a policy that would expand federal oversight of the Temporary Assistance for Needy Families (TANF) program and increase access to recipients’ personal information for eligibility reviews and compliance checks.
The states argue the policy would improperly expand federal access to sensitive information, including Social Security numbers, immigration status, addresses, marital status, and parentage details.
The administration says the move is intended to strengthen oversight, verify eligibility, and ensure taxpayer-funded benefits are provided in accordance with federal requirements.
The lawsuit challenges a June 23 notice issued by the Administration for Children and Families that would update the TANF system of records beginning Aug. 11.
The states argue the expanded data-sharing authority violates federal privacy protections, including the Privacy Act, the Administrative Procedure Act, and the Constitution’s spending clause.
Led by New York, the coalition asked a federal court to block implementation of the policy, arguing that Congress gave states broad authority over administering TANF programs and limited federal oversight to ensuring states meet statutory requirements, according to Courthouse News.
The administration has defended the policy as part of a broader effort to strengthen accountability in a program that provides more than $16 billion annually to states, Washington, D.C., territories, and tribal governments.
Officials have argued that additional reviews are necessary to confirm recipients meet eligibility requirements, including citizenship and immigration status rules.
The policy comes as the Trump administration increases scrutiny of federal benefit programs, with officials saying stronger verification measures are needed to prevent fraud, waste, and improper payments.
Earlier this year, the administration created a task force focused on identifying potential fraud and ensuring taxpayer-funded benefits are not distributed to individuals who do not qualify, according to Nexstar.
The administration has also raised concerns that some states have failed to adequately verify whether recipients meet federal eligibility requirements, including rules related to immigration status.
New York Attorney General Letitia James criticized the policy, arguing that it would compromise the privacy of families who rely on assistance 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,” James said.
The states argue that expanding access to TANF records could discourage some eligible families from applying for assistance because of concerns that their information could be shared with immigration authorities or other agencies.
The administration has said the changes are intended to verify eligibility and strengthen oversight of the program.
The lawsuit also claims the policy could place additional burdens on states by requiring agencies to respond to expanded federal reviews and update procedures for handling confidential information, according to KING 5.
Federal officials have not commented on the lawsuit.
The Administration for Children and Families previously stated that the updated system would allow it to “ensure compliance with all TANF program requirements” and verify recipient eligibility.
TANF was created by Congress in 1996 as a replacement for the former Aid to Families with Dependent Children program.
The program provides funding to states that use the money for services, including cash assistance, childcare support, employment programs, and emergency assistance for low-income families.
According to federal data cited in the lawsuit, more than 2 million people received TANF assistance in 2025, including nearly 1.5 million children.
California had the largest number of recipients, followed by New York.
The lawsuit comes amid broader disputes between Democratic-led states and the Trump administration over federal oversight of social programs.
The coalition is asking the court to declare the policy unlawful and prevent the federal government from implementing it for the states involved in the case.
