States sue Trump administration over new US immigration rule

Twenty‑two U.S. states, including New York, and the District of Columbia, together with a coalition of cities, are suing the Trump administration to block a new Department of Homeland Security (DHS) rule. The measure, slated to take effect on Friday, widens the criteria that can lead to denial of green cards, visas or entry into the country based on a applicant’s potential dependence on government assistance.

What changes in the “public charge” rule

The new rule modifies the “public charge” provision of U.S. immigration law, which allows the government to deny a visa or green card to anyone deemed likely to rely on government assistance. Historically, immigration officials considered only cash benefits such as Temporary Assistance for Needy Families (TANF) or Supplemental Security Income (SSI).

The change proposed by the Trump administration, however, does not specify which safety‑net programs must be considered, allowing non‑cash benefits such as Medicaid, housing vouchers and the Supplemental Nutrition Assistance Program (SNAP), also known as food stamps, to be included. The rule targets people who already have legal status in the U.S. and permits officials to consider benefits applied for on behalf of family members, including children who are U.S. citizens.

Legal actions against the measure

New York Attorney General Letitia James and New York City Mayor Zohran Mamdani, who leads a coalition of cities, announced the lawsuits. James said the rule would force immigrants to answer difficult questions, such as whether using health insurance or food assistance would hurt their chances of obtaining a green card. The states argue they would lose billions of dollars in federal funding if immigrants—especially mixed‑status families—stop using programs out of fear of immigration consequences.

The suits, filed in the Southern District of New York, ask the court to declare the rule illegal and to prevent DHS from using it. James stated that “cruelty is the goal” of the change, aiming to create a “deterrent effect on immigrants” and to “make clear that they are not welcome here.”

Impacts for states and cities

The change is expected to disproportionately affect cities with large immigrant populations, such as New York, Chicago, San Francisco and Seattle, which rely heavily on federal funding. According to the states’ filing, they estimate losing about $4.05 billion annually in federal transfers to Medicaid and CHIP programs, roughly $2.2 billion of which would affect the states that are parties to the action.

Mayor Mamdani said a “climate of fear for immigrants,” created by the Trump administration, is already keeping people from signing up for government benefits for which they are eligible. Arline Cruz, director of health programs at Make the Road New York, an immigrant‑rights organization, noted that the rule has generated a lot of confusion, especially for mixed‑status families who wonder whether they should withdraw their U.S. citizen children from programs like SNAP.

History and rationale

The public‑charge provision dates back to the Immigration Act of 1882. The first Trump administration, in 2020, expanded the categories of benefit programs that could be considered. However, in 2022, the Biden administration issued a rule that again excluded non‑cash benefits from consideration, largely reverting to long‑standing practice. The new rule taking effect this week would overturn the Biden‑era rule and is broader than the one adopted by the first Trump administration.

In a statement, DHS said “sanctuary states are terrified they will lose federal funds” because hundreds of thousands of people “may withdraw from American welfare programs.” DHS, in an X post on July 16, declared that the Trump government is “restoring the basic principle that immigrants must be able to support themselves,” reaffirming the self‑sufficiency requirement and protecting public resources.

Scope of the new rule

About 588,000 applicants are subject to public‑charge reviews each year, on average, according to DHS. The states bringing the suit say they will bear the policy’s costs, citing the specific risk of losing federal funding as people leave safety‑net programs, while public agencies face higher expenses dealing with the resulting confusion and fear.

The “big beautiful bill” signed by the Trump government in July 2025 limits legal immigrants’ eligibility for Medicaid and food stamps. Refugees, asylees and victims of domestic abuse and sex trafficking are no longer eligible for the programs. Only green‑card holders and certain other immigrants can enroll, although U.S. citizen children generally remain eligible.

With information from CNN.