Trump administration threatens to withhold federal funds from states that grant benefits to undocumented immigrants

The administration of President Donald Trump has stepped up its efforts to restrict access of undocumented immigrants to federal benefits, issuing warnings to states about the consequences of not complying with its directives.

In a recent letter sent to the governors of all 50 states, Labor Secretary Lori Chavez-DeRemer, warned that states that allow undocumented immigrants to access unemployment benefits could lose federal funds, specifically Unemployment Insurance Title III administrative grants.

Chavez-DeRemer emphasized that "Our nation’s unemployment benefits exist solely for workers who are eligible to receive them”, stressing that applicants must be legally authorized to work in the United States, available and actively seeking employment.

He also urged states to use the SAVE immigration status verification system, provided by the Department of Homeland Security (DHS), to ensure that benefits do not reach undocumented immigrants. This system, according to Chavez-DeRemer, is a "is a critical tool" for complying with federal laws.

The letter references two key Republican administration directives: the memorandum “Preventing Illegal Aliens from Obtaining Social Security Act Benefits” and Executive Order 14218 “Ending Taxpayer Subsidization of Open Borders.”

These measures seek to strengthen eligibility verification and prioritize federal resources for U.S. citizens, especially for people with disabilities and veterans.

More departments join

In parallel, Agriculture Secretary Brooke Rollins announced a similar stance on the Supplemental Nutrition Assistance Program (SNAP), known as food stamps.

Rollins stated to Fox News, that “To allow those who broke our laws by entering the United States illegally to receive these benefits is outrageous”, stressing that “USDA’s nutrition programs are intended to support the most vulnerable Americans”.

The USDA has required states to verify the identity and immigration status of SNAP applicants, using tools such as the SAVE system and the master decedent list to prevent fraud.

Although federal law, including thePersonal Responsibility and Work Opportunity Act of 1996, already prohibits undocumented immigrants from accessing most federal benefits such as SNAP, Medicaid and unemployment insurance, the Trump Administration argues that there are loopholes and fraud that need to be addressed.