Four States Sue CMS Over Medicaid Work Requirement Funding Threat
The attorneys general of Oregon, Minnesota, New Mexico and Washington filed suit Nov. 5 in Oregon federal court against HHS and CMS, arguing the federal government cannot withhold existing Medicaid funding from states that decline to adopt the work requirement created by HR 1. The complaint cites NFIB v. Sebelius and argues the work requirement, which applies to ACA expansion adults and requires 80 hours a month of work, community service or education and redeterminations every six months, amounts to a new program the federal government cannot impose by threatening existing funds. Oregon alone says 564,177 residents are in the expansion group, representing $5.1 billion or 54% of the state's federal Medicaid funding this fiscal year, and cites a study projecting about 20% of Oregon enrollees would be disenrolled starting in early 2027. The states seek a declaration that withholding funds for noncompliance is unconstitutional and injunctions blocking any such withholding; CMS said it does not comment on pending litigation.