Weekly Immigration News: Medicaid Cutoff Arrives Oct. 1 for Many Refugees, Asylees and Other Lawful Immigrants

Immigration News

Enrollment navigator at a community health center helping a father holding a toddler understand a Medicaid coverage letter
CitizenPath Staff
Educating and Empowering Immigrants

A summary of the most important U.S. immigration news from the past few weeks, updated weekly. This roundup highlights policy changes, USCIS updates, court rulings, and other developments that may affect immigrants and their families.

IMMIGRATION NEWS FOR WEEK ENDING SEPTEMBER 25, 2026

[Top Story]
Medicaid Cutoff Arrives Oct. 1 for Many Refugees, Asylees and Other Lawful Immigrants

Beginning October 1, 2026, many lawfully present immigrants who qualify for Medicaid today will lose that eligibility. The change comes from the tax and spending law President Trump signed in summer 2025. According to an analysis by KFF, the law limits federal Medicaid and CHIP eligibility to lawful permanent residents, Cuban and Haitian entrants, and people living in the U.S. under the Compacts of Free Association.

Groups losing eligibility include refugees and asylees who do not yet have a green card. New Jersey officials told the New Jersey Monitor that about 25,000 noncitizens in that state could lose coverage, including refugees, asylees, trafficking victims, certain domestic violence survivors and recent humanitarian parolees.

Some groups are not affected. States that elected the option may continue covering lawfully residing children and pregnant people, and New Jersey says it will keep covering both. Undocumented immigrants were already ineligible for full Medicaid coverage before the law.

KFF cites Congressional Budget Office estimates that the change will reduce federal spending by $6.2 billion and leave about 100,000 more people uninsured by 2034. New Jersey said it has spent more than $10 million on enrollment and verification systems and has mailed affected households requests for documents to confirm continued eligibility.

What it means for immigrants:

If your family gets Medicaid and anyone has refugee, asylee or parole status, open every letter from your state Medicaid office now and answer by the deadline. Refugees and asylees who are eligible to apply for a green card should explore that option.

Other Key Immigration Updates

Draft IRS Tax Form Asks About Citizenship

The IRS released a draft 2026 Form 1040 that, for the first time, asks whether filers are citizens, nationals or authorized to work. The question supports proposed limits on refundable credits. It is not final and would first appear on returns filed in 2027.

H-1B Fee Renewed, Layoffs Now Scrutinized

On September 18, President Trump extended the $100,000 H-1B fee through September 21, 2027. A separate executive order directs agencies to weigh employer layoffs. Forbes reports the fee remains blocked by a federal court ruling while the appeal continues.

Visa Lottery Winners Near Final Deadline

Diversity Visa eligibility for DV-2026 selectees ends September 30, and unused visas do not carry over. The State Department told consulates to resume processing on September 10, but attorneys report little movement at most posts.

State Department Targets Birth Tourism Networks

On September 23, the State Department announced visa restrictions on people who engage in or facilitate birth tourism. The policy targets network operators, visa "fixers" who coach applicants and foreign medical providers who support the practice.

What It Means for Immigrants

  • Tax form citizenship question: Nothing changes for this filing season. Keep filing your taxes as required, and keep work permits and Social Security records handy for next year's return.
  • H-1B fee and layoff reviews: H-1B workers at companies that recently had layoffs may face more questions. Keep copies of your petitions, pay records and job description in one place.
  • DV-2026 deadline: If you were selected and your visa hasn't been issued, contact your consulate now. Save every email and note the date of each reply.
  • Birth tourism restrictions: Pregnant visitors should give truthful answers about their travel plans. Avoid any paid service that promises a U.S. citizen baby through a tourist visa.

NEWS FROM THE WEEK ENDING SEPTEMBER 18, 2026

[Top Story]
Court Order Blocks September Deadline — and USCIS Postpones New Form I-765

A federal court blocked DHS’s fixed-admission rule for F, J and I nonimmigrants, delaying implementation and restoring prior USCIS rules and older Form I-765 and I-539 editions.

University international student adviser on the phone in a campus office while students wait outside the door

States Sue to Stop the Public Charge Rule

A coalition of 22 states and the District of Columbia filed suit Sept. 14 in the U.S. District Court for the Southern District of New York. The attorneys general argue the rule exceeds DHS authority and is arbitrary and capricious under the Administrative Procedure Act, and they ask the court to vacate it.

Mixed-Status Households Weigh Dropping Coverage

Between 1.4 million and 4.1 million Medicaid and CHIP enrollees in mixed-status households could disenroll under the rule taking effect Sept. 18, according to KFF estimates reported by Stateline. DHS projects federal and state spending could fall by close to $9 billion a year as a result.

Salvadoran Work Permits Fall Into Limbo

Temporary Protected Status for roughly 200,000 Salvadorans lapsed Sept. 9 without a DHS decision on renewal. Employers who cannot confirm whether their workers' authorization remains valid have started layoffs, The Washington Post reported, and businesses in the D.C. region say they expect more.

A New Fiscal Year Resets the Green Card Lines

Fiscal year 2027 begins Oct. 1, the point at which annual immigrant visa numbers reset and categories that ran out of visas late in the year can reopen. USCIS has not yet designated the October filing charts, but they are expected soon.

NEWS FROM THE WEEK ENDING SEPTEMBER 11, 2026

[Top Story]
Adjustment of Status Filers Face Several Important Deadlines This Week

Four USCIS changes hit adjustment applicants between Sept. 15 and Oct. 1, including new editions of Forms I-864, I-765 and I-485, plus revised public charge rules.

Close-up of edition dates printed in the corner of two USCIS immigration forms

Students Get a Clock Instead of a Program

"Duration of status" ends Sept. 15 for F, J and I nonimmigrants under a DHS final rule. F and J admissions run up to four years from the program start date, the F-1 grace period drops from 60 days to 30, and extensions require Form I-539.

Court Keeps Tax Records Away From ICE

The U.S. Court of Appeals for the D.C. Circuit on Sept. 9 upheld an injunction blocking the IRS from sharing taxpayer data with ICE. Judge Cornelia Pillard wrote that the arrangement automated review of millions of records without individual review.

Diversity Visa Cases Ordered Back Into Motion

A federal court in the Northern District of California temporarily vacated the USCIS memo that had frozen Diversity Visa adjustment applications. USCIS was ordered to resume ordinary adjudication of the plaintiffs' pending applications for the remainder of the DV fiscal year.

H-2B Cap Closes for the Winter Half

USCIS announced Sept. 11 that it received enough petitions to meet the H-2B cap for the first half of fiscal year 2027. Sept. 4 was the final receipt date for petitions requesting start dates before April 1, 2027.

NEWS FROM THE WEEK ENDING SEPTEMBER 4, 2026

[Top Story]
USCIS Replaced the Affidavit of Support Overnight — and Old Forms Are Being Rejected

USCIS released a new 08/24/26 edition of Form I-864, effective August 31, adding sponsor credit-report authorization and eliminating acceptance of the prior edition.

Sponsor using a calculator and tax returns while completing Form I-864, Affidavit of Support

Internship Rules Tighten for Student Visas

Reuters reported the administration moved to restrict Curricular Practical Training for international students. An August 24 memo tells schools CPT must be an integral, required part of the curriculum. Several universities paused CPT approvals while reviewing the guidance.

Citizenship Officers May Now Ask Your Neighbors

USCIS issued policy guidance dated August 25 reinforcing neighborhood investigations under INA 335(a). Officers may contact neighbors, employers, or coworkers to verify a naturalization applicant's residence, employment, and character. Waivers remain available case by case.

Body Cameras Ordered as Agents Deploy

Newsweek reported that USCIS purchased body-worn cameras ahead of deploying newly authorized special agents. USCIS has not said how many cameras were bought, which offices receive them, or which personnel will be assigned to wear them.

The Public Charge Deadline Is Two Weeks Out

The new public charge guidance applies to Forms I-485 postmarked or filed on or after September 18, 2026. Applications filed before that date are decided under the 2022 policy. USCIS says receiving a benefit does not automatically make someone inadmissible.

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Immigration rules and policies change frequently. Staying informed helps families avoid mistakes, missed deadlines, or unexpected consequences. This weekly roundup focuses on developments that have practical, real-world impact. Sign up for the free CitizenPath newsletter and empower your journey with timely, trustworthy support.

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