Overview
- Twenty-two states plus the District of Columbia and a separate coalition of major cities filed federal lawsuits in Manhattan on Monday, Sept. 14, asking a judge to block the Department of Homeland Security rule set to take effect on Sept. 18.
- The final DHS/USCIS rule rescinds the narrower 2022 standard and restores a broader test that lets officers consider a wide range of means‑tested benefits, including Medicaid, SNAP, housing aid and benefits used by U.S. citizen family members.
- Plaintiffs contend the rule exceeds DHS's statutory authority, is arbitrary and capricious under the Administrative Procedure Act, and was adopted without proper procedures or clear limits on what programs may count against applicants.
- Health analysts and plaintiffs warn the change could prompt millions in mixed‑status households to disenroll from programs; KFF estimates 1.4–4.1 million Medicaid and CHIP enrollees in such households could withdraw from coverage out of fear.
- DHS and USCIS defended the policy as restoring self‑sufficiency standards while opponents say the rule's vagueness and the revised Form I‑485 will create operational confusion for applicants, state agencies and local service providers if a judge does not block it.