A new federal rule would allow immigration officials to consider any means-tested public benefits, including Medicaid, housing vouchers, and other non-cash programs, when determining public charge eligibility, potentially making it harder for immigrants to obtain status or entry.

The policy broadens the public charge standard by not specifying which benefits count and permits evaluating benefits applied for on behalf of family members, including U.S. citizen children.

Set to take effect soon, the rule revives the 2019 approach to deeming someone a public charge and allows consideration of benefits beyond cash assistance and SSI from any prior or current receipt.

A coalition lawsuit argues the rule could cost billions in federal funding for states and harm public health and welfare services.

Local leaders across major cities condemn the rule as unlawful and harmful, stressing the impact on immigrant communities and the strain on public services.

A coalition of 22 states and cities, led by New York Attorney General Letitia James, has filed lawsuits challenging the rule, seeking to block it rather than seek damages.

A separate suit includes New York City and multiple other cities and counties, arguing the policy would hurt public health, economies, schools, and safety by deterring eligible people from accessing benefits.

The lawsuits ask a court to void the rule, contending it would cause widespread harm and shift costs to local governments.

The Department of Homeland Security defends the rule as restoring a prior standard and argues sanctuary jurisdictions fear losing federal funds as people leave welfare programs.

Estimates project up to about 4 million people nationwide could unenroll from healthcare, including 1.8 million children, potentially increasing immigrant community mortality in NYC over five years by roughly 10%.

Critics describe the policy as fear-mongering and a wealth test, highlighting the large foreign-born populations in areas like Santa Clara County and the broader social and fiscal costs.

New Jersey alone is home to roughly 2.2 million immigrants, about a quarter of the state’s population, underscoring concerns about public services and finances.