More than 20 states and Washington, D.C., are taking the Trump administration to court over a policy that could hand federal authorities access to Social Security numbers, immigration status, and other personal details belonging to millions of welfare recipients.

The lawsuit, filed Monday, targets a June 23 notice from the Administration for Children and Families (ACF) that expands how data from the Temporary Assistance for Needy Families (TANF) program can be used. The policy, which is scheduled to take effect Aug. 11, would allow disclosures to agencies or contractors involved in program-integrity reviews, including checks on citizenship or immigration status.

According to the Federal Register notice, the government wants to confirm state compliance through audits, fraud investigations, and monitoring. It also adds Social Security numbers as searchable identifiers and lets ACF use verification information from the Department of Homeland Security and the Social Security Administration.

The administration argues that expanded access will protect taxpayers, verify eligibility, and reduce fraud. It has made similar data demands involving SNAP, warning Democratic-led states that refused to share recipient information with a blunt message: "No Data, No Money." The broader anti-fraud push has also sparked disputes over Medicaid and other state social-service funding.

MarketDash reached out to the White House for comment but didn't get an immediate response.

States Call Plan A Sweeping Privacy Breach

The states argue that Congress assigned TANF eligibility verification to state governments and never authorized a sweeping federal data-sharing system. In their complaint, they call ACF's position an "extravagant" claim of authority and a "gross breach of personal privacy."

"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," said New York Attorney General Letitia James.

TANF distributes more than $16 billion annually to states, territories, and tribal governments for cash assistance, job training, childcare, housing, and other support for low-income families with children. The states warn that sharing records with immigration authorities could discourage legally eligible families from seeking help.

Coalition Seeks Court Intervention Before Deadline

Reuters reported that civil-rights and privacy groups filed a separate lawsuit in Brooklyn alleging Privacy Act violations.

The coalition says the policy violates the Administrative Procedure Act, federal privacy laws, and the Constitution. They want a judge to block the rule before Aug. 11, while the administration maintains that stronger oversight will ensure states follow TANF rules.