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Kentucky Gov. Matt Bevin (left) and President Trump. Photo: Mark Wilson/Getty Images

Republican governors and the Trump administration both suffered a serious setback on Friday when a federal judge blocked Kentucky's version of Medicaid work requirements from taking effect.

Why it matters: Work requirements are among the most significant changes the Trump administration has made so far in health policy. The new rules are also a critical part of conservatives' effort to frame Medicaid as a welfare program.

The catch: That's exactly why the policy ran into trouble in court.

Driving the news: U.S. District Judge James Boasberg ruled Friday that the Health and Human Services Department had not sufficiently demonstrated that work requirements would further Medicaid's goals as a health care program.

  • That's a requirement of the waiver process under which HHS has been approving work requirements.
  • "The Secretary never once mentions the estimated 95,000 people who would lose coverage, which gives the Court little reason to think that he seriously grappled with the bottomline impact on healthcare," Boasberg wrote.

What to watch: Boasberg's ruling only applies to Kentucky, not the other states where HHS has approved work requirements. But this will not be the last legal challenge, and if more judges follow Boasberg's lead, the administration's effort to redefine Medicaid could end up backfiring.

  • In Kentucky, Gov. Matt Bevin has said he will back out of the Medicaid expansion entirely if he ultimately loses this litigation.
  • In the meantime, Boasberg gave HHS another chance to come back with a stronger justification for the new rules.

Meanwhile:

  • Maine Gov. Paul LePage has, unsurprisingly, vetoed the latest effort to implement the state's expansion, which voters approved last year.
  • Republicans in Idaho are hoping to formally cement the party's opposition to an upcoming ballot initiative on Medicaid expansion.
  • The Tennesseean asks why Tennessee has not joined the expansion ranks.

Go deeper

24 mins ago - Technology

Scoop: More boycotts coming for Facebook

Illustration: Sarah Grillo/Axios

Leaders of the Stop Hate For Profit social media boycott group are discussing whether to organize another campaign against Facebook in light of an explosive investigative series from The Wall Street Journal, Common Sense CEO Jim Steyer tells Axios.

The intrigue: Sources tell Axios that another group, separate from the Stop Hate For Profit organization, is expected to launch its own ad boycott campaign this week.

Democrats' dwindling 2022 map

Illustration: Sarah Grillo/Axios

Democrats are trying to unseat only about half as many Republican House members next year as they did in 2020, trimming their target list from 39 to 21.

Why it matters: The narrowing map — which reflects where Democrats see their best chance of flipping seats — is the latest datapoint showing the challenging political landscape the party faces in the crucial 2022 midterms.

Felix Salmon, author of Capital
55 mins ago - Economy & Business

Evergrande's reassuring default

Illustration: Annelise Capossela/Axios

It's not a Lehman moment but it's still a very big deal. Chinese construction giant Evergrande looks set to default on its $300 billion of liabilities, in a move that has already had global market repercussions.

Why it matters: Evergrande is the first big test of the global financial system — and especially the Chinese financial system — since the pandemic-induced chaos of March 2020, when central banks around the world were forced to take unprecedented measures to prevent total collapse. So far, world markets seem to be coping just fine.

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