Twenty-Two States Sue Federal Government Over Restrictive Green Card Rule
Washington, Monday, 14 September 2026.
A 22-state coalition filed lawsuits on September 14, 2026, seeking to block federal green card restrictions that officials project could cost states over $5 billion annually in lost benefits.
Legal Challenge to Federal Immigration Rule
On Monday, 14 September 2026, a coalition of 22 Democratic-led U.S. states and the District of Columbia filed lawsuits against the Trump administration to block a newly expanded Department of Homeland Security rule targeting green card applicants [1]. The regulation, scheduled to take effect on Friday, 18 September 2026, would allow federal immigration authorities to deny permanent residency to noncitizens deemed likely to utilize public assistance programs [1][2].
The legal challenge was led by New York Attorney General Letitia James, who filed in the U.S. District Court for the Southern District of New York, while a separate lawsuit was filed by a coalition of cities including New York City, Chicago, and San Francisco [2]. Plaintiffs argue the rule harms public health and economic stability by forcing legal immigrant families to forgo vital aid, presenting new policy and workforce uncertainty for employers across labor-dependent industries [1].
Projected Economic Costs to States
The Department of Homeland Security projects the rule’s chilling effect will cost states significant funding, estimating a loss of $4.05 billion annually in Medicaid and CHIP funding alongside $1 billion annually in SNAP funding [2]. When combined, the total projected annual loss to state programs amounts to 5.05 billion, reflecting the substantial financial interdependence between federal assistance and state-level health and nutrition safety nets [2].
Legal arguments from the plaintiffs contend the policy forces immigrant families to choose between accessing basic needs and risking future green card denial, while simultaneously straining state and local emergency rooms [1]. This reduction in participation in federal food stamp programs is expected to impact local businesses, creating a ripple effect through regional economies that rely on consistent consumer spending [1].
Historical Context and Policy Shift
The administration’s policy is a revival of an effort from President Trump’s first term previously reversed by the Biden administration, granting immigration officers broad authority to deny green cards to applicants utilizing public benefits like the Supplemental Nutrition Assistance Program [1]. For over 140 years, federal policy defined public charge as primary dependence on the government for long-term subsistence, a standard narrowed in 2022 to exclude anything beyond cash assistance or long-term institutionalization [2].
Previous iterations of similar rules caused benefit disenrollment rates of up to 35% among mixed-status families and up to 60% among refugees, according to background data cited by the coalition [2]. The new rule expands the definition to include nearly any public benefit used by an applicant or their family members, including U.S. citizen children, reversing the 2022 federal standard [2].
Implementation Timeline and Stakeholder Responses
The coalition of attorneys general from 21 states and the District of Columbia, along with the governor of Pennsylvania, is asking a federal judge to vacate the rule before it takes effect on September 18, 2026 [2]. New York City Mayor Zohran Mamdani stated that families who remain fully eligible for benefits will feel a chilling effect, and all New Yorkers will pay for it, emphasizing that immigrant communities are not a burden [2].
As of 13 September 2026, the Department of Homeland Security had not provided a response to media requests regarding the current legal challenges against the administration’s public charge rule for green card applicants [1]. Administration officials maintain the basic principle that immigrants must be able to support themselves, while state leaders argue the rule preys on fear and counts on families forfeiting legally entitled assistance [1][2].