Legal Challenge Filed in Southern District of New York
New York State and a coalition of 21 other states, joined by major cities including New York City, Chicago, and San Francisco, filed lawsuits on Monday, September 14, 2026, to block a new Department of Homeland Security (DHS) rule. The regulation, set to take effect this Friday, significantly expands the government’s discretion to deny green cards and visas based on the ‘public charge’ provision.
The legal action, initiated in the Southern District of New York, challenges the administration’s move to penalize immigrants for utilizing non-cash government benefits. New York State Attorney General Letitia James, alongside New York City Mayor Zohran Mamdani, announced the filing, arguing that the rule is ‘arbitrary and capricious’ and exceeds the authority granted to DHS by Congress.
Impact on Safety Net Access
The rule change allows immigration officials to consider an applicant’s use—or the use by their family members, including U.S. citizen children—of programs such as Medicaid, SNAP (food stamps), and school meal assistance as evidence of potential dependency on government aid. Historically, immigration policy limited these assessments to cash-based assistance.
Plaintiffs contend the policy will create a ‘chilling effect,’ discouraging eligible immigrants from accessing essential services out of fear that doing so will jeopardize their immigration status. According to the court filings, the states estimate they could lose approximately $2.2 billion in federal funding for Medicaid and CHIP programs due to mass disenrollment, with nationwide losses projected at $4.05 billion.
Stakes for Mixed-Status Families
Advocacy groups like Make the Road New York warn that the policy is already causing confusion among mixed-status families. Even those not subject to the new rule are reportedly withdrawing from programs to avoid contact with the federal government. DHS, however, maintains that the policy is a necessary step to protect public resources and ensure that immigrants demonstrate self-reliance.
As of Monday afternoon, no judge had been assigned to the case, and no hearing dates were scheduled. The plaintiffs are seeking to have the rule declared unlawful and to obtain an injunction preventing its implementation.