California, New York and the District of Columbia are helping lead a lawsuit aimed at stopping a new federal data-sharing policy involving the Temporary Assistance for Needy Families program, or TANF. The case challenges the sharing of anti-poverty program information with the Department of Homeland Security.

According to the complaint described in the report, the Trump administration has said the policy, published in June, is designed to prevent fraud and abuse in TANF. But the states argue the arrangement goes much further, saying it opens the door to broad monitoring of people who rely on public assistance.

The lawsuit frames the dispute as a fight over privacy and the limits of federal data collection. The plaintiffs contend that records gathered through a safety-net program should not be folded into what they describe as a wider surveillance effort, especially when the information concerns low-income households.

The legal challenge adds to a broader clash between Democratic-led states and the administration over how personal data can be used across federal agencies. At the center of this case is whether anti-poverty program data can be shared with DHS under a fraud-prevention rationale, or whether that policy crosses a line on privacy and government reach.