CED Newsletters & Policy Alerts

Administration Targets Federally Funded Aid for Unauthorized Immigrants

February 28, 2025

Action: Executive Order “Ending Taxpayer Subsidization of Open Borders”

What it does: The Executive Order directs agencies to identify all Federally funded programs that provide benefits to unauthorized immigrants and, to the maximum extent allowed by law, take actions to prevent provision of those benefits. It also directs agencies to ensure that payments to States and localities “do not, by design or effect, facilitate the subsidization or promotion of illegal immigration, or abet so-called ‘sanctuary’ policies that seek to shield illegal aliens from deportation.” Finally, the Order directs agencies to enhance verification systems to ensure that benefits are not provided to unauthorized immigrants.

Key Insights

• A 1996 law, the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA), disqualifies unauthorized immigrants from receiving most Federally-funded benefits, such as Medicaid and Supplemental Nutrition Assistance Program (SNAP).
• However, immigrants granted humanitarian “parole” (such as refugees admitted into the US) have the ability to work legally and also become eligible for some Federally-funded benefits. The President suspended the refugee admission program on Inauguration Day, but a Federal judge recently blocked that suspension, citing Congress’ “detailed framework for refugee admissions” and limits on the President’s power to suspend it.
• PRWORA provides for some exceptions, including treatments of emergency medical conditions and non-cash community assistance programs “such as soup kitchens, crisis counseling and intervention, and short-term shelter.” PRWORA also exempts “nonprofit, charitable organizations” from needing to verify an individual’s immigration status when providing benefits.
• However, PRWORA introduces legal interpretation issues since statutes authorizing Federal programs often include their own eligibility requirements, leaving agencies, states, and courts to determine how to apply diverging eligibility criteria.
• The Department of Health and Human Services and Department of Justice (DOJ), each issued guidance following PRWORA’s passage indicating that funds provided to public or private entities do not quality as a “federal public benefit,” though the DOJ guidance further clarifies that PRWORA restrictions still apply if Federal funds pass through an exempt entity to an ineligible individual.
• Because of these legal complications, it is not yet clear what practical effect the Order will have. Subsequent guidance from agencies and, possibly, court decisions resulting from litigation will be needed to determine its impact.