DHS to deny green cards to immigrants using SNAP or Medicaid
DHS finalized a rule allowing immigration officers to deny green cards to applicants who use SNAP, Medicaid, or housing aid. It takes effect Sept. 18, 2026, and could push over a million people to disenroll from benefits.
The Department of Homeland Security has finalized a rule that lets immigration officers deny green cards to applicants who have used public benefits like SNAP, Medicaid, or housing assistance. The rule takes effect Sept. 18, 2026.
What changed
DHS issued a final rule scrapping a 2022 Biden-era regulation that had restricted which benefits immigration officers could count in green card decisions. The new final rule restores the broader discretion USCIS had during the first Trump administration, letting officers conduct case-by-case reviews that consider an applicant’s age, health, family status, assets, financial resources, education, skills and whether the person has received means-tested taxpayer-funded benefits including food stamps, Medicaid and housing assistance.
The change takes effect Sept. 18, and USCIS will roll out a revised Form I-485, rejecting older versions filed on or after that date.
How many people are affected
In its November 2025 proposal, DHS estimated that roughly 588,000 adjustment-of-status applicants each year would be subject to public-charge review — a figure that does not include all people applying for visas abroad or seeking admission at the border.
DHS projected that the final rule will lead to 1.27 million people disenrolling or forgoing their benefits, including U.S. citizen children in mixed-status households.
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The chilling effect
DHS attributes much of the projected decline to immigrants deciding not to apply for benefits or withdrawing from programs they are already using because of concerns that participation could negatively affect future immigration applications. The department acknowledged that lower participation in programs such as Medicaid, SNAP, and housing assistance could have broader economic effects on healthcare providers, grocers, landlords and other entities that receive revenue through those programs.
That is the piece traders should focus on: revenue exposure at businesses that serve lower-income households and immigrant communities.
Options market and stocks to watch
WMT: Walmart is one of the largest SNAP-accepting retailers. Watch for any commentary on grocery traffic if enrollment drops.
KR: Kroger has meaningful SNAP exposure in its grocery mix. Watch for guidance shifts on same-store sales.
DG: Dollar General skews toward low-income consumers who lean on food assistance. Watch for traffic sensitivity.
CNC: Centene is heavily tied to Medicaid managed care. Watch for enrollment and membership commentary.
UHS: Hospital operators with high Medicaid mix could see softer utilization if immigrant families disenroll. Watch payer-mix disclosures.
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