Seattle Nonprofit Sues Trump Administration to Protect Immigrant Care
Medicaid cuts for SSI recipients are unlawful, argues social services provider
SEATTLE, WA – Nonprofit leaders in Washington state are suing the U.S. Department of Health and Human Services (HHS) and Secretary Robert F. Kennedy Jr. over a new Medicaid policy that would defund critical health and long-term care services for immigrants with serious health needs beginning October 1.
Neighborhood House and their client Mariia Matsai, represented by Northwest Health Law Advocates and Barnard Iglitzin & Lavitt, LLP, filed the lawsuit on Tuesday in U.S. District Court in Seattle.
The lawsuit challenges HHS guidance issued in April 2026 that strips federal Medicaid funding from Washingtonians who are dually-eligible for Supplemental Security Income (SSI) and Medicaid due to their low income and age, disability, or blindness. Neighborhood House and Ms. Matsai are asking the court to invalidate the federal guidance, which would allow federal Medicaid funding to continue for Washingtonians with SSI who rely on Medicaid for life-saving care.
Plaintiffs filed a motion today requesting a preliminary order to postpone implementation of the Medicaid policy for impacted Washingtonians until the court can fully review their lawsuit.
Mariia Matsai is one of those Washingtonians. She fled the Ukrainian war in 2024 and was granted humanitarian parole status by the U.S. federal government. Ms. Matsai relies on health coverage and long-term care from Medicaid to manage serious heart conditions and diabetes. Without it, she will be at risk of heart failure, stroke, diabetic comas, or other life-threatening harms.
“Neighborhood House was founded over a century ago to serve Jewish refugees fleeing tyranny in Europe. Today, we continue to serve people displaced by war and persecution," says Neighborhood House Executive Director Janice Deguchi. "With this lawsuit, we’re standing up for our clients who were promised care in this country.”
The dispute stems from HHS guidance that implements a section of President Trump’s 2025 budget law, known as H.R. 1 or the “One Big Beautiful Bill Act.” H.R. 1 changes who is eligible to receive federal funding for Medicaid and other federally-funded health coverage programs. It eliminates eligibility for many lawfully present immigrants, such as asylees, refugees, humanitarian parolees, and victims of trafficking. HHS issued guidance in April 2026 that instructs states to include SSI recipients in the group that will lose Medicaid coverage October 1st.
But H.R. 1 did not change other federal laws that extend Medicaid to lawfully present immigrants who are eligible for SSI because of their age, blindness, or disability and very low income and financial assets.
Northwest Health Law Advocates Co-Executive Director Emily Brice explains, “With H.R. 1, Congress chose to end health coverage for thousands of Washingtonians. That’s the cold, hard truth. But Congress did not change existing laws that require Medicaid for this group of Washingtonians with SSI. We’re here to remind the federal Administration they don’t get to skirt the law.”
The lawsuit filed on Tuesday argues that existing federal laws protect Washingtonians like Ms. Matsai and about 150 other Neighborhood House clients. And there are more SSI recipients impacted statewide. Despite efforts to identify alternative resources, to date there are no viable options to replace the care available through Medicaid.
“Many of us have experienced the importance of medical and long-term care to families facing serious health needs,” notes Janice Deguchi. “Without their medicine, doctors, and long-term caregivers, many of our clients will have no choice but to rely on costly emergency room visits. Ultimately we need leaders to step up and ensure care for all Washingtonians, but we can start by ensuring that those with federal protections keep their care.”
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Neighborhood House is a 120-year-old nonprofit that opens doors for people of all ages experiencing language, cultural, and systemic barriers to housing, health, education, and economic opportunity in King County.
Northwest Health Law Advocates is a legal advocacy nonprofit that has worked for over 25 years to advance universal health care rights and protections for all Washingtonians.