Lawsuit Seeks to Block Sharing of Sensitive Data with Homeland Security and Other Federal Agencies

MONTPELIER, Vt. – Attorney General Charity Clark today joined a coalition of 23 other states and the District of Columbia in suing the Trump Administration over unlawful policy changes that would give the Administration broad access to the sensitive private information of millions of families receiving Temporary Assistance for Needy Families (TANF) benefits, known in Vermont as “Reach Up.” Vermont receives approximately $47 million annually in TANF funding and assists almost 7,000 Vermonters.

In June, the Administration for Children and Families (ACF) issued a notice claiming it plans to dramatically expand its oversight of state TANF programs, including by allowing ACF to share detailed records on TANF recipients with other federal agencies like the Department of Homeland Security (DHS). Under ACF’s new policy, TANF recipients’ Social Security numbers, addresses, immigration status, and other sensitive personal data would be illegally shared across the federal government and even potentially with private organizations. Attorney General Clark and the coalition argue that ACF’s attempt to share millions of people’s data and implement new monitoring of states’ TANF programs violates the law and Constitution, and is a blatant effort to politically target those who are receiving critical TANF benefits.

“The Trump Administration’s attempts to unlawfully access the personal information of families receiving Reach Up is a blatant misuse of a program relied upon by our friends and neighbors,” said Attorney General Clark. “This troubling pattern of weaponizing public assistance programs erodes the trust of the people the federal government is supposed to serve. My Office will continue to pursue every available legal avenue to protect these programs and ensure they remain safe and accessible.”

Congress created TANF as part of the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996. The law requires the federal government to provide block grants to states, territories, and tribal governments, which then have broad authority to use the funds for a variety of programs to provide assistance to low-income families with children. TANF funds support childcare subsidies, emergency housing for families fleeing domestic violence, emergency food assistance, support for grandparents caring for children, and other critical services. TANF currently provides over $16 billion every year to all fifty states, the District of Columbia, and several territories and tribal governments for these programs. It is one of the largest sources of direct assistance to low-income families and a crucial part of states’ efforts to fight poverty. 

The law enacting TANF specifically requires states, not the federal government, to be responsible for verifying TANF applicants’ eligibility for benefits. The Vermont Department for Children and Families (DCF) administers Reach Up. DCF has robust procedures for ensuring that only eligible Vermonters receive Reach Up funds and these procedures work. Yet ACF now claims it has broad authority to oversee states’ TANF programs and must share recipients’ private data with other federal agencies to double check their immigration status. 

Attorney General Clark and the coalition argue that ACF’s new policy violates the Administrative Procedure Act and the Spending Clause of the U.S. Constitution by ignoring restrictions on data sharing in TANF programs and enacting arbitrary new conditions on federal funding. The lawsuit seeks a court order declaring ACF’s policy illegal and preventing it from being implemented.

Joining Attorney General Clark in filing this lawsuit are the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, Rhode Island, Virginia, Washington, Wisconsin, and the District of Columbia, as well as the governors of Kentucky and Pennsylvania.

This lawsuit is the 59th case Attorney General Clark has brought against the Trump Administration since President Trump took office in January 2025. For more information on actions taken by the Attorney General on behalf of Vermonters, visit our website.  

###

Attorney General’s Office | 109 State Street | Montpelier, VT 05609-0101 | ago.vermont.gov