The Real Consequences of Symbolic Social Policies: The Public Charge Rule and Benefits Use among Noncitizen Immigrants

Abstract

This article examines the impact of the 2018 announcement of changes to the public charge rules on the benefits use of noncitizen immigrant households. Using data from the American Community Survey and difference-in-difference models, as well as an event-study approach, we document a decrease in Medicaid use in 2019 by members of low-income households with noncitizens compared to low-income households with only citizens, with larger effects for children. We find a similar decline in SNAP use but are unable to rule out differential pretrends before the announcement. Our findings suggest that the fear of being considered a public charge susceptible to deportation under the new rules likely explains the decrease in noncitizens’ public benefits in the postannouncement period.