



Twenty-two states, the District of Columbia, and a coalition of cities including New York, Chicago, San Francisco and Seattle filed two lawsuits Monday against a new federal rule taking effect Friday that lets immigration officers weigh applicants' use of Medicaid, CHIP, SNAP and housing assistance as a 'public charge' factor against green cards, visas or entry. The Trump administration rescinded a 2022 Biden-era policy that had shielded such non-cash benefits from consideration, framing the reversal as protecting taxpayer dollars and expecting immigrant self-sufficiency.
The states' lawsuit cites the Department of Homeland Security's own estimate that states nationwide could lose about $4.05 billion a year in federal Medicaid and CHIP transfer payments, with the plaintiff states alone facing roughly $2.2 billion in losses, plus another $575 million from SNAP disenrollments. The states argue they will be forced to backfill funding gaps themselves as families disenroll out of fear, driving up costs from untreated illness and lost preventive care.
The separate cities' and counties' suit estimates roughly 1.3 million people, including 600,000 children, could lose care or coverage in the plaintiff jurisdictions, with New York City alone projecting 6,000 fewer annual primary care visits. New York City Mayor Zohran Mamdani said the rule would create a 'chilling effect' reaching even families who remain fully eligible for benefits. The coalition also warns children could be pushed out of free or reduced-cost education programs that serve roughly a fifth of Seattle's population.
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