Green card applicants in the US will now face tighter scrutiny over their use of government benefits, as a new rule makes it harder for those relying on public assistance to secure permanent residency.

US has taken a significant step forward to ensure foreigners in the United States are self-reliant and do not rely on government benefits, so that immigration does not incentivize dependence. On July 16, the Department of Homeland Security (DHS) issued a final rule rescinding the 2022 Biden-era regulation on public charge determinations.

Doing away with the ‘public charge’ rule will have a big impact on green card applicants applying for lawful permanent resident status. Green card applicants are likely to face increasing scrutiny based on their use of taxpayer-funded benefits, such as Medicaid, food stamps, and housing assistance, in the assessment for permanent legal status.

The rule applies to noncitizens in the U.S. applying for lawful permanent residence or seeking admission as immigrants or nonimmigrants, with certain congressional exemptions.

The final rule takes effect on September 18, 2026. It applies to applications for admission made on or after September 18, 2026, or applications for adjustment of status postmarked or electronically submitted on or after September 18, 2026.

On or before the effective date, USCIS will issue subregulatory guidance to inform, but not dictate, how USCIS officers make public charge inadmissibility decisions under this final rule, based on the totality of circumstances.

DHS wants to uphold Congress’s original intent that foreigners in the United States be self-reliant and not dependent on taxpayer-funded government benefits. Under the Immigration and Nationality Act (INA), a person applying for a visa, admission, or adjustment of status is inadmissible to the United States if they are likely at any time to become a public charge.

What the Rule Changes

Officers can now evaluate applications on a case-by-case basis, as the restrictions that limited their review have been lifted.

The now-rescinded Biden-era regulation had restricted which public benefits DHS could consider, limiting officers’ ability to review all relevant factors as Congress intended. Under this final rule, USCIS officers can assess all relevant facts on a case-by-case basis for each applicant.

In short, officers now have broader discretion in assessing public charge concerns, allowing for a case-by-case evaluation of relevant facts. DHS says this change aligns with congressional intent and moves away from the limits imposed by the 2022 rule.

USCIS will publish a revised Form I-485, Application to Register Permanent Residence or Adjust Status. Older versions of Form I-485 postmarked or submitted electronically on or after the effective date will not be accepted.

To determine whether a foreigner is likely at any time to become a public charge, consular and immigration officers will consider the applicant’s age, health, family status, assets, resources, financial status, education, and skills.

Most foreigners seeking family-based immigrant visas and adjustment of status, and certain foreigners seeking employment-based immigrant visas or adjustment of status, must submit Form I-864 to avoid being found inadmissible as likely to become a public charge.

Family-based immigrants and some employment-based immigrants use Form I-864 to show they have adequate financial support and are not likely to depend on the U.S. government for financial assistance.

Impact on Green Card Seekers

The green card application process is at a crossroads. ‘Adjustment of status’ is a process that allows non-immigrants to switch to a different visa classification and then apply for a green card — all without leaving the US.

Earlier, USCIS, through an office memo, announced a new policy stating that foreigners seeking adjustment of status must do so through consular processing via the Department of State, outside the country, except in the case of ‘extraordinary cicumstances’.

Now, they also have to prove financial independence and show they are not a public charge on government benefits. All immigrants who have used or are likely to use government benefits will lose their chance of being eligible for green cards.

Disclaimer: This article is for general informational purposes only and does not constitute legal, immigration, or tax advice. Immigration laws and government policies are subject to frequent change without notice. While we strive to provide accurate updates, readers are strongly advised to verify the latest requirements with the official embassy, consulate, or government portal of the respective country. Financial Express is not responsible for any decisions made based on this information.