Proposed Immigration Rule Change Would Harm Maryland Families and Communities

October 12, 2018 by Ellen Hutton in Blog, Economic Opportunity

This week, the Trump Administration proposed a new rule that would make it harder for many lawful immigrants to remain in the country. This proposal, referred to as the “public charge rule,” would put the futures of more than 90,000 Marylanders in jeopardy.

Under the current rules, immigrants who are applying to become a lawful permanent resident (LPR or green card holder) or to extend or change the category of a nonimmigrant visa can be denied if they are receiving cash assistance due to low income. Currently this rule applies to Temporary Assistance for Needy Families (TANF), Supplemental Security Income (SSI), and General Assistance.

The new Trump Administration proposal would also permit denying green card and visa applications for families that qualify for food assistance through the Supplemental Nutrition Assistance Program (SNAP), Medicaid, and some forms of housing assistance.

Many Marylanders would struggle to be deemed acceptable under the new rule

This rule change allows the Trump Administration to fundamentally alter our approach to immigration without input from Congress, making family income and potential use of health care, nutrition or housing programs central considerations in whether or not to offer people an opportunity to build their lives in the U.S. Under the new public charge rule, the test to be deemed acceptable to receive a green card or visa includes only one heavily weighted positive factor – an income over 250 percent of the poverty line ($62,750 annually for a family of 4). However, it heavily weights a variety of factors against applicants, including:

  • An income of less than 125 percent of the poverty line ($31,375 annually for a family of 4), even if sponsored by a U.S. citizen with a higher income.
  • Receiving any amount of cash or noncash assistance – SNAP, Medicaid/CHIP, housing assistance, SSI, TANF, or General Assistance – in the last 36 months.
  • Credit score and history.

If the new public charge rule was applied to all Marylanders, more than 1.2 million U.S.-born Marylanders would struggle to be deemed acceptable. Though most non-citizens will not face judgement under the rule, 90,000 non-citizen Marylanders could lose their rights to continue their lives here based on the proposed new standard, versus only 10,000 as the rule is currently written.

1 in 5 would struggle to meet new requirements

Source: Center on Budget and Policy Priorities, based on 2013-2015 CPS data

 

The dangerous chilling effect caused by the proposed rule has implications for all Marylanders

Misinformation and fear of repercussions are already stopping immigrants from accessing assistance that they are qualified for, making it harder for families make ends meet. The biggest impact of this chilling effect falls on children, including U.S.-born children of non-citizen immigrants, who are legally eligible for nutrition, medical, and housing assistance if their parents’ incomes aren’t enough to afford the basics.

Households composed of at least one non-citizen and at least one recipient of SNAP, Medicaid/CHIP, housing assistance, SSI, TANF, or General Assistance will be the most likely to forgo assistance. There are 380,000 Marylanders living in such households, including 150,000 children. Many of these individuals won’t face a public charge determination but are still likely to be nervous about continuing to receive assistance or applying for assistance. Many families will stop using assistance that helps them put food on the table, keep a roof over their heads, and access medical care during times of financial hardship.

Maryland also offers Medicaid to immigrant children and pregnant women, but enrolling in that medical assistance could prevent them from receiving a green card later on under the proposed rule. Pregnant women should not have to make the decision to go without necessary medical care or risk being separated from their child in the future. Likewise, children shouldn’t be discouraged from accessing the medical care they need to grow into healthy, productive adults by the threat of losing the opportunity to stay in the U.S.

The effects of the proposed rule change would also harm communities and our economy. If even 15 percent of those who receive SNAP or Medicaid disenrolled, Maryland would lose out on $122 million in federal funds. The dollars invested in these programs are infused into the local economy as people use groceries or get medical care. The potential ripple effect would be even higher, and more than 1,600 jobs could be lost. Based on studies of prior experiences of big policy changes creating a chilling effect for immigrants, such as the welfare reform bill of the 1990s, 15 percent disenrollment is a low estimate.

 

Economic Loss to Maryland

Simulated Impact of Trump Rule Lower Estimate
15% disenrollment
Middle Estimate
25% disenrollment
Higher Estimate
35% disenrollment
Loss of Federal Funds to Marylanders $122 million $203 million $284 million
Potential Economic Ripple Effects $238 million $397 million $556 million
Potential Jobs Lost 1,621 2,702 3,783

Sources: Estimate of direct loss was calculated by the Center on Budget and Policy Priorities; economic ripple effects and jobs lost was estimated by the Economic Policy Institute. Totals may not sum due to independent rounding. For methodology, see “Only Wealthy Immigrants Need Apply,” Fiscal Policy Institute, October 10, 2018.

 

Immigrants make vital contributions to Maryland

Limiting immigration by rewarding wealthy immigrants while taking opportunities away from working families is the wrong path for Maryland’s future. The more than 1 in 7 Marylanders who were born outside of the U.S. help to keep our communities culturally vibrant and make vital contributions to Maryland’s economy as business owners, workers, taxpayers, and consumers. One fifth of Maryland business owners are immigrants, and their businesses generate more than a billion dollars per year. Many of Maryland’s immigrant entrepreneurs were not well off when they arrived in the U.S., but they were given the opportunity to build a life here and thrive. Immigrants are also critical to Maryland’s workforce, often working in industries that struggle with a shortage of workers. Each year immigrant-led households in Maryland pay more than $6 billion in federal taxes and $3 billion in state and local taxes. Lawmakers should focus on expanding opportunities for legal immigration rather than making existing opportunities more exclusive.

Anti-poverty programs like SNAP, Medicaid, and housing assistance help individuals and families get through periods of hardship and work toward bettering their financial circumstances. Immigrants who are eligible for these programs should not be penalized for accessing them when they are needed.

The proposed public charge rule is in opposition to the ideal of America as the land of opportunity and will be harmful to children and working families. We still have a chance to stop the change and keep the more reasonable rule in place. Anyone affected by the proposed change or wishing to stand with the immigrants in our communities should submit a public comment opposing it.