US states file suit against Trump administration over tightening green card eligibility

New York and 21 other states are suing the Trump administration to block a new Department of Homeland Security rule that would give immigration officials wider discretion to deny green cards over public benefits use, according to a report by CNN.

The rule, set to take effect Friday, would allow non-cash benefits like Medicaid and housing vouchers to be considered when assessing whether immigrants could become dependent on government aid. New York Attorney General Letitia James and New York City Mayor Zohran Mamdani are leading the lawsuit, arguing DHS exceeded its authority and that the rule is “arbitrary and capricious.”

States say they could lose $4.05 billion in federal Medicaid and CHIP funding nationwide if families disenroll from programs out of fear.