US States Sue to Block Trump New Green Card Benefits Rule
US States Sue to Block Trump New Green Card Benefits Rule
More than 20 Democratic-led states, counties and cities filed a major federal lawsuit on Monday, 14 September 2026, to block the Trump administration's new public charge rule that is set to take effect on Friday, 19 September 2026. The rule would give US immigration officers broad power to deny green cards to legal immigrants who have used public benefits such as food stamps (SNAP), Medicaid, and public housing assistance.
This legal battle is shaping up to be one of the biggest immigration fights of 2026, with major financial and human consequences for millions of immigrant families across the United States.
What Is the Public Charge Rule?
The public charge rule is a long-standing part of US immigration law that allows officials to deny permanent residency to someone likely to become primarily dependent on government assistance. The new Trump rule revives and expands a strict 2019 version introduced during Trump's first term, which was abandoned by the Biden administration in 2021.
Under the new rule, immigration officers can consider an applicant's past use of means-tested benefits, including Medicaid, Supplemental Nutrition Assistance Program (SNAP), Section 8 housing vouchers, and other cash assistance programs, as a negative factor in green card applications.
According to the Department of Homeland Security (DHS), approximately 588,000 green card applicants undergo public charge review each year. DHS says the rule is needed to reaffirm the principles of self-reliance and self-sufficiency and ensure immigrants do not become a burden on taxpayers.
Why States Are Suing
The coalition lawsuit is led by New York Attorney General Letitia James, along with attorneys general from California, Illinois, Washington, Massachusetts and 16 other states. They argue the rule is illegal, arbitrary, and cruel.
Attorney General James said on Monday, "This rule preys on fear. It forces hard-working families to make an impossible choice between feeding their children and keeping their immigration status. We will not allow it."
States argue the rule will cause a chilling effect, where even US-born children of immigrants will disenroll from benefits they are legally entitled to out of fear that their parents' immigration cases will be harmed. Public health experts say this could lead to more hunger, untreated illness, and homelessness.
Financially, states estimate they will lose $4.05 billion in federal Medicaid and Childrens Health Insurance Program (CHIP) funding if enrollment drops, because federal funding is tied to enrollment numbers. Plaintiff states alone would lose an estimated $2.2 billion in the first year.
What Happens Next
The lawsuit asks a federal judge in the Southern District of New York to issue a nationwide preliminary injunction to block the rule before Friday's deadline. Legal experts expect a ruling by Thursday.
If the judge does not block it, the rule will go into effect on 19 September and immigration officers can begin denying green cards on that basis immediately. The case is expected to go to the Second Circuit Court of Appeals and potentially to the Supreme Court, which is currently weighing another Trump-era mail-in voting case.
In related US news today, a second federal judge late Sunday blocked a new US Postal Service rule that would tighten mail-in voting identification requirements ahead of the November 2026 midterm elections. The Supreme Court has been asked to intervene urgently.
Other US Developments - EPA and AI
The US Environmental Protection Agency (EPA) is also set to announce at the G20 Energy Ministers meeting in Houston on Monday its final rule repealing Biden-era carbon emission limits on coal and gas-fired power plants. The Biden rules, finalized in 2024, aimed to cut more than 1 billion metric tons of greenhouse gases by 2047.
EPA Administrator Lee Zeldin said the repeal will save power companies $120 million per year and keep electricity prices low. Environmental groups including Sierra Club said the move will increase deaths from heatwaves and wildfires.
In tech, Nasdaq futures fell on Monday after Anthropic CEO Dario Amodei called for slowing AI development, a call joined by Elon Musk and Sam Altman, citing safety risks. Senators Ted Cruz and Amy Klobuchar are negotiating a new AI safety law.
We will continue to follow this developing story.
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