The U.S. Department of Justice (DOJ) issued a new legal opinion on Wednesday requiring all states to report undocumented immigrants to federal immigration authorities or risk losing federal funding for key welfare programs. The opinion, issued by the DOJ’s Office of Legal Counsel, reverses a 1998 interpretation that limited reporting obligations to specific state agencies administering Temporary Assistance for Needy Families (TANF) and Supplemental Security Income (SSI) programs.
States must report undocumented immigrants across all agencies
Under the new guidance, states participating in TANF or SSI must provide the Department of Homeland Security (DHS) with identifying information—including names, addresses, and other details—about individuals known to be in the country without legal authorization. The requirement applies to all state agencies, not just those directly administering welfare benefits, and includes data held by motor vehicle departments, law enforcement, and other state entities. States must submit this information at least four times per year and whenever requested by federal immigration authorities.
The DOJ stated that states will not face penalties for past reliance on the 1998 interpretation but emphasized that compliance with the new opinion is expected moving forward. Failure to comply could result in the loss of federal funding for TANF and SSI programs, which provide financial assistance to low-income families, elderly residents, and disabled individuals nationwide.
Legal rationale and congressional intent
Assistant Attorney General T. Elliot Gaiser of the DOJ’s Office of Legal Counsel asserted that the reporting requirement was clearly outlined in the 1996 welfare reform law. "When a state chooses to participate in TANF, it accepts the obligation to report illegal aliens in the United States," Gaiser stated in a DOJ news release. The opinion argues that tax dollars intended for vulnerable populations should not "perversely encourage illegal entry" but instead reinforce existing immigration and border laws.
Deputy Assistant Attorney General Joshua Craddock, who authored the opinion, described the clarification as a restoration of the original statutory meaning rather than the creation of new obligations. "Our clarification does not impose new obligations on states," Craddock said. "It simply restores the original meaning of the statute Congress enacted and ensures that DHS receives the information it is legally entitled to."
Potential legal and political challenges
The DOJ’s announcement is likely to face opposition from states led by Democratic officials, several of which have previously challenged similar federal immigration enforcement efforts. State attorneys general in multiple states have pushed back against prior attempts to compel local agencies to share immigration status information with federal authorities. Legal experts anticipate that some states may file lawsuits to challenge the new interpretation, arguing that it overreaches federal authority and conflicts with state-level protections for immigrant communities.
The new opinion does not apply retroactively, meaning states that previously relied on the 1998 interpretation will not face penalties for past non-compliance. However, the DOJ has made clear that future compliance is expected, raising the possibility of funding disputes between federal and state governments.
Background on TANF and SSI programs
TANF and SSI are among the nation’s largest safety-net programs, providing financial assistance to millions of low-income individuals, including families with children, elderly Americans, and people with disabilities. Every state in the country receives federal funding through these programs, which are administered by state agencies but subject to federal guidelines. The DOJ’s new interpretation expands the scope of information sharing required under these programs, potentially affecting how states manage and report data on immigrant populations.
The DOJ’s legal opinion does not specify a timeline for enforcement but indicates that states should begin aligning their reporting practices with the new guidance immediately. The agency has not yet detailed the process for determining compliance or the specific consequences for states that fail to meet the requirements.