- The Trump administration plans a new DHS rule that would give immigration officials wider discretion to deny green cards, visas, or entry based on public benefits use.
- On Monday, New York and 21 other states, along with the District of Columbia, filed a lawsuit in the Southern District of New York to block the rule.
- New York City Mayor Zohran Mamdani leads a coalition of cities, including Chicago, San Francisco, Seattle, Santa Clara County, and King County, filing a similar lawsuit.
- The lawsuits were announced at a press conference on Monday, featuring Attorney General Letitia James and Mayor Mamdani.
- The states’ case targets a new policy that would permit immigration officials to punish immigrants for lawful use of public benefits.
- The new rule would make it tougher for many immigrants to obtain green cards if they use or are deemed likely to need public benefits such as food stamps, Medicaid, or housing vouchers.
- The states argue they would lose billions of dollars in federal funding if immigrants, particularly mixed-status families, disenroll from programs due to fears about immigration consequences.
- The lawsuit claims that nationwide, states will lose an estimated $4.05 billion in annual transfer payments from the federal government for the States’ Medicaid and CHIP programs alone.
- The legal documents state that New York is particularly vulnerable due to its large immigrant population and extensive public benefits programs.
New York and 21 other states have initiated legal action against the Trump administration to block a new Department of Homeland Security rule that could significantly impact immigrants seeking green cards. The rule allows immigration officials to deny applications based on the use of public benefits, which advocates argue could lead to widespread disenrollment from essential programs.12
The lawsuit, spearheaded by New York Attorney General Letitia James and New York City Mayor Zohran Mamdani, claims the rule preys on the fears of immigrant families. “Hardworking families should not be forced to go without the support they need because they fear asking for assistance will get them deported,” James stated. The rule, which is set to take effect this week, rescinds protections established during the Biden administration.34
The states argue that the rule could lead to billions in lost federal funding as mixed-status families may avoid public benefits due to fear of immigration consequences. “This rule preys on that fear and counts on families forfeiting the food assistance, health care coverage, and other public benefits to which they are legally entitled,” James added.
The lawsuit does not seek monetary damages but aims to block the implementation of the rule and prevent the DHS from enforcing it. The coalition of states and cities is also concerned about the broader implications of the rule, which could allow immigration officers to consider benefits applied for on behalf of family members, including U.S. citizen children.
“The states argue the rule would cost them billions in federal funding, estimating $4.05 billion in annual losses for Medicaid and CHIP alone, with New York facing $2.2 billion in reduced payments. Attorney General James said the rule 'preys on that fear' and forces families to forfeit legally entitled benefits.”









