India, Sept. 18 -- A new federal rule granting immigration officials far greater discretion to deny green cards to applicants who use public benefits took effect on Friday, even as a coalition of Democratic-led states presses ahead with a lawsuit seeking to block it.

The rule, finalised by the Department of Homeland Security in July, rescinds a 2022 regulation that had narrowly defined who could be barred from permanent residency on "public charge" grounds, and replaces it with guidance that allows officers to weigh a far broader range of benefits, including Medicaid, food stamps and housing vouchers, when assessing applications.

New York Attorney General Letitia James is leading a coalition of 21 other states and the District of Columb...