Key Points
SEIU, AAUP, 22 states, and immigrant groups sued USCIS on October 5 over May and August 2026 policies.
May policy treats domestic green card applications as negative factor; August policy allows denials without applicant response.
Public Charge Rule now penalizes applicants whose families used Medicaid or SNAP benefits.
Lawsuit argues policies retroactively harm pending cases and force family separation.
Labor unions, immigrant rights organizations, and 22 states filed a federal lawsuit on October 5 in Massachusetts federal court challenging two Trump administration policies that restrict green card access. The policies, issued by U.S. Citizenship and Immigration Services in May and August 2026, penalize immigrants for applying for permanent residence from within the United States rather than leaving for consular processing abroad. The lawsuit argues the rules upend 70 years of legal practice and threaten family separation.
What the two policies do
The May 2026 policy directs USCIS officers to treat an applicant’s choice to seek a green card from within the U.S. as a negative factor. Applicants must now demonstrate “unusual or even outstanding” considerations to overcome that penalty. The August 2026 policy gives officers authority to deny applications, including pending cases filed before the new rules, without first requesting additional evidence or notifying applicants of an intended denial.
Who is suing and why
The Service Employees International Union (SEIU), American Association of University Professors (AAUP), immigrant families, and 22 states plus Washington D.C. and New York City filed the lawsuit. Plaintiffs argue the policies change the rules for people already pursuing permanent residence and put them at risk of family separation, job loss, and education disruption. Maryland joined the challenge specifically over changes to the Public Charge Rule, which now penalizes applicants whose families used Medicaid or SNAP benefits.
The Public Charge Rule expansion
The Public Charge Rule, dating to 1882, originally denied green cards only to applicants who could not support themselves financially. The Trump administration expanded it this fall to penalize applicants if they or family members used government programs for low-income households, including Medicaid and SNAP. USCIS now evaluates applicants on age, health, education, skills, family status, assets, and financial details. Spouses, children, parents of immigrants, skilled workers, and diplomats face the changes. Asylum seekers and most refugees are exempt.
Administration’s response
USCIS Spokesman Zach Kahler called the lawsuit “frivolous” and said the agency will “faithfully apply long-standing immigration law.” The Department of Homeland Security stated that “sanctuary states” fear losing federal funds. The administration has not addressed the core claim that the policies retroactively apply to applications filed before the August policy took effect.
Final Thoughts
The lawsuit tests whether the Trump administration can retroactively apply new green card restrictions to pending cases. A federal court decision could affect tens of thousands of immigrants already in the U.S. legal process and reshape decades of adjustment-of-status practice.
FAQs
Adjustment of status lets eligible immigrants apply for green cards from within the U.S. without leaving their families or jobs to pursue visas abroad. For over 70 years, it has been the standard legal path.
Under the August 2026 policy, yes. USCIS can now deny applications, including pending ones filed before the policy, without first requesting additional evidence or notifying applicants of intent to deny.
Yes. The expanded Public Charge Rule now penalizes applicants if they or family members used Medicaid, SNAP, or other low-income government programs, even if they are otherwise eligible.
Asylum seekers and most refugees are not subject to the changes. Undocumented immigrants also do not qualify for public assistance programs.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
About Author

Danny Kontos
Co FounderDanny Kontos has been a stock investor since 2007 and co-founded Meyka in 2023. He keeps a small, focused portfolio and only moves when the numbers are hard to argue with. He has waited years on a single position before. Before Meyka, he ran a web hosting company and a mortgage lending platform, so he knows what a well-run business actually looks like under the hood. This article did not come from a news cycle. It came from someone who has been watching this space for a long time.
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