Attorney General Marty Jackley is arguing against a proposed federal rule granting DACA recipients access to health plans.
Fourteen other attorneys general join Jackley in the suit.
DACA, or Deferred Action for Childhood Arrivals, is a policy allowing undocumented immigrants who arrived in the U.S. as children to defer deportation and be eligible for work permits.
Jackley said a new rule set to take effect Nov. 1 grants eligibility for a subsidized health plan to 200,000 DACA recipients nationwide. He is arguing against the rule in North Dakota U.S. Federal Court on Tuesday.
The case claims that there are "approximately 9,000 to 12,000 illegal aliens residing” in South Dakota. It also alleges they are costing state taxpayers between $26 million and $35 million per year.