States, cities, and counties have filed lawsuits challenging new federal regulations impacting green card applicants and immigration status. These rules, effective Friday, expand the criteria immigration officers can use, including the consideration of public benefits like Medicaid and food assistance, under the “public charge” grounds. Previously, non-cash benefits were exempt from this evaluation. The Trump administration argues that this change ensures taxpayers’ money is protected.
The lawsuits target the U.S. Department of Homeland Security and U.S. Citizenship and Immigration Services, filed in the Southern District of New York. Many households with mixed immigration status may opt out of benefits to avoid jeopardizing their residency applications, affecting U.S. citizen children entitled to such support.
According to a lawsuit by 22 states and the District of Columbia, the rule could lead to a $4.05 billion annual loss in federal payments for Medicaid and CHIP, with plaintiffs losing $2.2 billion. States like California, New York, and Washington are among the plaintiffs. They argue the rules’ ambiguities will force states to cover funding gaps, adding significant financial burdens.
The new rule could also result in a $1 billion reduction in the Supplemental Nutrition Assistance Program (SNAP) nationwide. Plaintiff states may lose $575 million. State officials argue these changes will increase administrative costs and negatively impact public health as families avoid essential healthcare and nutritional programs.
In a separate lawsuit, cities including New York City, Chicago, and San Francisco, claim the rules unlawfully revert established public charge limits. It estimates 1.3 million people, including 600,000 children, might lose care. New York City, leading the lawsuit, predicts a reduction in primary care visits by 6,000 annually. Mayor Zohran Kwame Mamdani warns that fear of losing benefits will deter families from seeking necessary services.
The coalition argues that children may drop out of educational programs, with significant reliance on such services in Seattle and King County. Mayor Mamdani emphasized the broad, chilling effect on families, causing hesitation in accessing benefits.
