US states risk welfare funds over failure to report undocumented migrants

The United States Justice Department has issued a legal opinion stating that all state agencies must report immigrants without legal status to the Department of Homeland Security (DHS), or risk losing billions of dollars in federal welfare funding. The opinion, released on Wednesday, marks a significant expansion of the administration's immigration enforcement efforts.

Previously, only the specific state agencies administering federal welfare programs were required to share such information. The new interpretation extends this obligation to all state entities, including universities and departments of motor vehicles, which may have knowledge of individuals residing in the country without legal status.

The opinion, signed by Deputy Assistant Attorney General Joshua Craddock, warns that failure to comply could lead to the loss of funding for the Temporary Assistance for Needy Families (TANF) and Supplemental Security Income (SSI) programs. Federal TANF grants exceed $16.5 billion annually, while SSI benefits surpass $60 billion annually.

The legal opinion is binding on federal agencies but is not law itself. It is likely to face legal challenges, particularly from Democratic-led states that have already sued to prevent DHS from accessing personal details of individuals receiving benefits under these programs. Courts have previously limited similar Trump administration efforts to compel information sharing, though some judges have allowed immigration authorities to access certain data, such as Medicaid records.

The administration argues that the previous 1998 rule misinterpreted the 1996 welfare reform law by limiting the reporting requirement to a single state agency rather than the entire state government. The new interpretation could affect millions of people, as at least 19 states and Washington, D.C., permit undocumented immigrants to obtain driver's licenses, and many state universities admit such students.