Trump Administration Warns States of Welfare Funding Cuts Over Undocumented Immigrants

The Trump administration has warned U.S. states that they could lose billions of dollars in federal welfare funding if they fail to report undocumented immigrants known to state agencies.

The warning was issued Wednesday by the Justice Department’s Office of Legal Counsel, marking a significant expansion of the administration’s immigration enforcement efforts.

Under the new interpretation, states receiving federal funding for two major welfare programmes must report individuals unlawfully present in the United States to the Department of Homeland Security.

Previously, the reporting requirement applied mainly to agencies directly administering the welfare programmes. However, the new guidance could extend the obligation to other state agencies that may hold information about undocumented immigrants, including universities and departments of motor vehicles.

Deputy Assistant Attorney General Joshua Craddock said states that fail to comply could face the loss of federal funding.

The programmes affected include Temporary Assistance for Needy Families and Supplemental Security Income. Federal TANF grants exceed $16.5 billion annually, while federal SSI benefits total more than $60 billion.

Undocumented immigrants are not eligible for either programme.

Although the Justice Department’s opinion is not a law, it is binding on federal agencies. The policy could face legal challenges from Democratic-led states, several of which have already opposed the administration’s efforts to expand federal access to personal information held by state agencies.

At least 19 U.S. states and Washington, D.C., allow undocumented immigrants to obtain driver’s licences, while some public universities also admit students without legal immigration status. The new guidance could therefore give federal authorities access to information held by state agencies on millions of undocumented immigrants.