Arizona Attorney General Kris Mayes’ announcement of a lawsuit against the federal government met with scathing public criticism from Arizona State Representative John Gillette (R-LD30) in a July 2, 2025, X.com post.
Mayes accused the Trump administration of violating privacy protections by sharing Medicaid data with the Department of Homeland Security (DHS), which includes Immigration and Customs Enforcement (ICE) and called the data sharing an “illegal transfer of Arizonans’ private, personally identifiable health data.”
In her lawsuit announcement, Mayes’ office stated, “Arizonans accessing Medicaid services do so with the assurance that their data would be confidential. While administering AHCCCS and other healthcare programs, Arizona has relied on the federal government’s assurances that it will follow the law and protect confidentiality,” adding, “It appears the federal government has broken their promise.”
Gillette, a retired U.S. Army Command Sergeant Major familiar with federal regulations, countered in a post to X, “Administrative data sharing with DHS, DOJ, HHS is lawful. The state agreed to the terms when they took the matching funds. 42 CFR 431 privacy act, every service member knows this is only protected from non govt use.”
Administrative data sharing with DHS, DOJ, HHS is lawful. The state agreed to the terms when they took the matching funds. 42CFR 431 privacy act, every service member knows this is only protected from non govt use. https://t.co/wKVfxalKCi
— Rep. John Gillette AZ House LD30 (@AzRepGillette) July 2, 2025
According to 42 CFR §431.300, federal law “requires agencies to exchange information to verify the income and eligibility of applicants and beneficiaries.” Section 431.302 specifies that purposes related to plan administration include establishing eligibility, determining medical assistance amounts, providing services, and assisting in investigations or prosecutions tied to the plan’s administration.
Under these regulations, sharing data between Arizona and federal agencies like DHS, the Department of Justice (DOJ), and Health and Human Services (HHS) is not only legal but required. Any attempt by Arizona to block this data sharing could prompt federal legal action against the state, potentially at taxpayers’ expense.
Federal agencies are also bound by strict rules to safeguard shared data, limiting its use to authorized personnel and ensuring confidentiality standards comparable to those of the state agency.