This is not true, but im sure the headline you read sounded good
[1]https://www.cnn.com/2019/10/01/us/nyc-illegal-alien-discrimi...
Perhaps the stories at the time conflated discrimination with mere use of the phrase if that is what you meant by good/not true.
whenever something sounds this absurd, read past the headline and you usually find whats actually going on is a lot more reasonable
> New York City has banned the term "illegal alien" when used "with intent to demean, humiliate or harass a person," the city said.
That sounds like an important qualification, but I suspect in praxis intent is hard to (dis)prove so it would probably depend on the judge and precedents?