A federal proposal to expand data sharing on Temporary Assistance for Needy Families recipients has been postponed to September 1, as several Democrat-led states seek to block the policy in court over privacy and immigration concerns
The U.S. Department of Health and Human Services has postponed the start date for a new policy that would allow the Administration for Children and Families (ACF) to share information about Temporary Assistance for Needy Families (TANF) recipients with other federal agencies. The policy, originally set to take effect this week, is now scheduled for September 1, according to a recent Federal Register notice.
The delay comes as a coalition of Democratic attorneys general from multiple states has filed a lawsuit in federal district court, seeking to halt the policy and have it declared unlawful. The states argue that the proposed data sharing could expose millions of TANF recipients' sensitive personal information-including Social Security numbers, marital status, and income-to agencies such as the Department of Homeland Security.
States Raise Privacy and Participation Concerns
According to the court filing, the coalition contends that the expanded data sharing would undermine trust between state agencies and TANF recipients, potentially discouraging eligible families from applying for benefits. The lawsuit claims that if the ACF is permitted to share TANF data with the Department of Homeland Security without clear legal limits, both citizens and qualified non-citizens may be deterred from seeking assistance due to fears about how their information could be used.
The attorneys general also argue that the policy is "arbitrary and capricious" under the Administrative Procedure Act and violates the Constitution's Spending Clause. They maintain that states could not have anticipated these new uses for the data when it was originally collected and shared with the federal government.
Federal Response and Next Steps
While the ACF has not commented publicly on the lawsuit, the agency stated in the Federal Register that the proposed data sharing is intended to prevent fraud and ensure compliance with TANF requirements, including verifying recipients' immigration status. The public comment period for the proposal is set to close on Tuesday, giving states and other stakeholders a final opportunity to weigh in before the policy is reconsidered.
In fiscal year 2024, the federal government allocated nearly $16.5 billion in TANF block grants to states and the District of Columbia, according to the Congressional Research Service. The outcome of the legal challenge could affect how states administer these funds and the level of privacy protections for families receiving cash assistance.
TANF is a federal program that provides temporary financial assistance to low-income families with children. States administer the program and collect recipient data, which is then shared with the federal government for oversight and compliance purposes. The current dispute centers on whether that information can be further shared with other federal agencies and for what purposes. The court's decision and any subsequent federal action will determine how recipient data is handled going forward.
