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States, cities sue to block Trump immigration rule on public benefits
On Monday, Democratic-led states and cities filed lawsuits in Manhattan federal court to block a new Trump administration immigration rule set to take effect Friday that would allow officials to deny green cards based on public benefit use.
Rescinding the 2022 Biden-era standard, the Department of Homeland Security policy revives broader criteria allowing officials to consider non-cash benefits like Medicaid and food stamps when evaluating green card applicants.
States estimate losing approximately $2.2 billion in reduced federal Medicaid and CHIP payments, while officials warn the policy's ambiguity triggers fear among mixed-status families, potentially forcing disenrollment from essential health services.
Plaintiffs argue the rule violates the Administrative Procedure Act by exceeding statutory authority; New York City Mayor Zohran Mamdani stated the policy forces families to choose between legal status and necessary support.
As the rule takes effect Friday, advocates warn of a 'chilling effect' where eligible families avoid healthcare and nutrition services, while local governments face increased costs addressing the resulting community-wide fallout.