Gov. Shapiro sues Trump administration over Medicaid exemptions, signs 11 bills into law

Governor Josh Shapiro has joined a coalition of 25 states and the District of Columbia in suing the Trump administration over a new rule implementing Medicaid work requirement exemptions for medically frail people.

According to the lawsuit, the Centers for Medicare and Medicaid Services (CMS) violated congressional protections when it issued an interim final rule concerning who is eligible for exemptions from new Medicaid work requirements.

The lawsuit alleges the rule “dramatically narrowed the Congressionally established exclusions from the work requirement for some of the most vulnerable Medicaid members” and “creates new requirements that constrain who is exempt due to their medically frail status and force medically frail individuals in need of healthcare to jump through unnecessary administrative hoops to get and retain life-saving healthcare coverage.”

“CMS’s final rule will cause harm and chaos for Plaintiff States. The work that State Medicaid agencies need to do in order to implement H.R. 1’s provisions is complex, expensive, and takes substantial time and attention to perform correctly,” the 74-page filing said. “Therefore, Plaintiffs cannot wait to see whether CMS fixes the clear deficiencies in its decision-making process before seeking legal protection for State Medicaid programs and State residents who depend upon them.”

“It will further strain safety net providers, lead to more uncompensated emergency care, and raise other costs associated with newly uninsured, medically frail residents,” the filing said. “And it will cause rural hospitals to be even more likely to shutter.”

Shapiro posted the following on X.com today:

We just sued the Trump Administration for trying to rip away Medicaid from Pennsylvanians who need it most.

Donald Trump, Dr. Oz, and RFK Jr. are hellbent on trying to push aside people who rely on Medicaid to get the care they need.

But here in Pennsylvania, we’re going to keep standing up to protect our most vulnerable Pennsylvanians.

For a more detailed analysis of the lawsuit, you can read Becker’s Hospital Review’s coverage here.

In related news, Shapiro announced today that he signed two bills—HB 1344 and HB 1877—into law this week.

House Bill 1344 was sponsored by Representative Mike Armanini and was co-sponsored by 16.

From its description:

An Act amending Titles 18 (Crimes and Offenses) and 53 (Municipalities Generally) of the Pennsylvania Consolidated Statutes, in riot, disorderly conduct and related offenses, further providing for definitions; and, in employees, further providing for canine training standards for police officers.

House Bill 1877 was sponsored by Representative Joseph D’Orsie and was co-sponsored by 13.

From its description:

An Act amending the act of March 10, 1949 (P.L.30, No.14), known as the Public School Code of 1949, in terms and courses of study, providing for Pennsylvania Seal of Biliteracy.

Shapiro also recently signed nine appropriations bills into law: HB 2403HB 2404HB 2405HB 2406HB 2407HB 2408HB 2409HB 2410, and HB 2411.

The new laws mark the first pieces of budget legislation to pass for FY 2026-27.

“Today I signed into law the first pieces of budget legislation for the next year — ensuring we continue to process licenses and certificates quickly, support our retirees, and fund the agencies who serve hardworking Pennsylvanians,” he said. “This is the first step toward a final budget, and we will continue to have productive conversations with the House and Senate to deliver for the Commonwealth.”

According to a news release, the bills fund the Bureau of Professional and Occupational Licensing and the professional licensing boards it administers, the Workers Compensation system, the Office of Small Business Advocate, the Office of Consumer Advocate in the Office of the Attorney General, the Pennsylvania School Employees Retirement System (PSERS), the State Employees Retirement System (SERS), the Philadelphia Parking Authority (PPA), the Public Utility Commission (PUC), the Pennsylvania State Police (PSP), and the Pennsylvania Gaming Control Board (PGCB).

The new laws bring Shapiro’s count to 25 for the year.

For all the latest news, follow us on Facebook or sign up for Glenside Local’s “Daily Buzz” newsletter here.

Photo: Commonwealth Media Services