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Judge Rejects States' Attempt To Block Medicaid Work Requirements
Authored by Zachary Stieber via The Epoch Times,
A federal judge on July 30 declined to block new work requirements for Medicaid recipients that states must implement by Jan. 1, 2027.
Judge Richard Stearns of the U.S. District Court for the District of Massachusetts turned down a request for a preliminary injunction made by Massachusetts and 25 other states to block the work requirements as the states’ legal challenge proceeds.
Stearns said in a six-page decision that the harms about which the states complained—added costs to comply with the new requirements—are largely reimbursable, since the federal government has said it will pay for 90 percent of the costs.
States have also complained that officials face a “tight timeline” to implement the requirements, which include mandating that beneficiaries aged 19 to 64 work, volunteer, or participate in job training for 80 or more hours per month. The timing, though, was set by Congress in the One Big Beautiful Bill Act in 2025, not by the defendant, the Centers for Medicare and Medicaid Services, in its guidance on implementing the requirements, the judge said.
“There is a certain point at which damages fail to justify the issuance of such an extraordinary measure,” Stearns wrote later. “Plaintiffs have not shown that their damages rise above that minimal threshold here. Moreover, the additional costs that may be incurred by the States are unlikely to bloom disproportionately given the familiarity of the responsible state agencies with the tasks to be performed.”
Lawyers for the states and the government did not immediately return requests for comment.
In addition to the Jan. 1, 2027, deadline to implement changes, states in their motion for an injunction noted that under the guidance, they also must inform Medicaid recipients of the looming update in notices by Sept. 1.
The states also opposed the guidance on how to determine whether a person is medically frail, which would exempt them from the work requirements. The guidance suggests that in no case can states base their determinations of whether an individual is “medically frail” solely on their records that an individual has a “particular diagnosis or condition” and improperly limits the short-term hardship exception for individuals experiencing an emergency declared by the president to those who can establish that the emergency renders them unable to comply, state lawyers told the court.
Government lawyers said the One Big Beautiful Bill Act delegated the definition of medically frail to the federal government, and the states are seeking to impose “arbitrary limits” on that authority. They also said the state plaintiffs had not met the standards for a preliminary injunction.
Stearns said on July 30 that the court’s denial of the injunction request “is not a reflection or anticipation of its ultimate views on the merits of the underlying litigation,” which will proceed.
“As illustrated in the pleadings and briefings to date (and in the arguments of counsel during the hearing), this case presents difficult issues regarding the scope of Congress’s delegation of interpretative authority to the Secretary and the faithfulness to Congressional intent with which the Secretary performed his task,” the judge stated.
“This, in turn, requires an examination of the data relied upon by the Secretary and the judgments (some medical) that underlay his amplification of Congress’s legislative outline.
“These are determinations that, in the view of the court, should be made on a developed record of the kind that informs a court’s decision at the summary judgment stage of a case.”
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Memory-Chip Crunch Hits Smartphone Demand Across China
Prices for electronic devices reliant on advanced memory chips, from smartphones to gaming consoles, have risen as the AI data-center buildout tightens supply and drives component costs higher. The resulting memory-chip crunch is now weighing on consumer demand, with Goldman’s latest note showing that the pressure is increasingly visible in China’s handheld-device market.
Goldman analyst Allen Chang, who focuses on everything from smartphones to semiconductors, AI, EVs, and robotaxis, cited new data on Friday showing that China’s smartphone shipments fell 17% from a year earlier and 36% from May, to 17 million units in June.
Second-quarter shipments totaled 69 million units, little changed from the previous quarter and a year earlier but above Goldman's 59 million estimate. Chang expects full-year 2026 shipments to decline 10%.
June 5G shipments fell 12% year over year to 16 million units, representing 85% of the market.
"We expect 2026 shipments to decline at 10% YoY, given rising memory cost weighing on demand," Chang wrote in the report.
Chang noted that the average number of cameras per handset declined to 2.9 this year, down from a 2022 peak of 3.8, while the share of cameras with resolutions of at least 20 megapixels increased to 66% of the total, up from 57% in 2025.
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Professional subscribers can read more about the memory chip market, data center buildouts, and smartphones at our new Marketdesk.ai portal.
Tyler Durden Fri, 07/31/2026 - 18:00