Medicaid officials improperly shared data on millions of people with ICE in January 2026, which ICE then transferred to Palantir without authorization, exceeding limits set by a federal court order. The data included information on U.S. citizens and immigrants with legal status; Palantir says the dataset has since been purged. U.S. District Judge Vince Chhabria paused CMS-ICE data sharing for immigration enforcement in late May after officials admitted to the overreach, and has scheduled an August hearing to clarify what data can lawfully be shared. Democratic state attorneys general suing over the arrangement say federal officials have since disclosed additional instances of improper sharing, including CMS inadvertently resending the same dataset to ICE during an effort to share data from states not involved in the lawsuit.