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Justice Department says states risk welfare funds if agencies fail to report unlawful presence to DHS

Thursday, September 3, 2026 · 2 sources

The Justice Department's Office of Legal Counsel said states in Temporary Assistance for Needy Families and Supplemental Security Income must require all state agencies to report people known to be unlawfully present to Homeland Security. Officials warned that failure to comply may cost program funding.

WASHINGTON - The Justice Department warned states they could lose billions in welfare funding if they do not report people known to be unlawfully present to the Department of Homeland Security, according to a legal opinion released Wednesday and reported by Fox News.

The Office of Legal Counsel said states that take part in Temporary Assistance for Needy Families and Supplemental Security Income must require all state agencies to make those reports. The opinion reverses a 1998 interpretation that limited the duty mainly to agencies that administer the programs. Under the new reading, other agencies that may know a person's status, such as colleges or motor vehicle offices, would also have to report.

Deputy Assistant Attorney General Joshua Craddock said failure to comply may lead to serious consequences, including loss of program funding. Federal TANF grants exceed $16.5 billion a year, and federal SSI benefits exceed $60 billion a year, Fox News reported. All 50 states and Washington, D.C., participate in the reporting rules tied to those programs. People who are unlawfully present are not eligible for either benefit.

The change aligns with President Donald Trump's immigration enforcement push. Some Democratic-led states have already sued to limit DHS collection of personal details on people in related programs, and courts have mixed results on information-sharing fights. Legal challenges to the new opinion are expected.

The 50+ takeaway: Illegal migrants are not eligible for TANF or SSI. The fight is over how widely state agencies must report known unlawful presence, and whether courts will block the new reading.

Go Deeper

Which programs are tied to the warning?

Temporary Assistance for Needy Families and Supplemental Security Income, according to the DOJ opinion summarized by Fox News.

What changed from 1998?

The new reading says all state agencies, not only the welfare offices that run the programs, must report known unlawful presence to DHS.

How much money is at stake?

TANF grants exceed $16.5 billion a year and SSI federal benefits exceed $60 billion a year, Fox reported.

Can illegal migrants get these benefits?

No. They are not eligible for TANF or SSI. The dispute is about reporting duties and funding conditions.

Will this face lawsuits?

Likely. Some states have already fought related DHS data requests in court.