Justice Department Requires States to Report Undocumented Immigrants for Welfare Funds

The United States Department of Justice issued a legal opinion on September 2, 2026, requiring states that receive federal cash welfare funding to report all known undocumented immigrants to the Department of Homeland Security. The ruling, issued by the Office of Legal Counsel, overturns a 1998 opinion by expanding reporting requirements to include all state agencies rather than just those managing the Temporary Assistance for Needy Families (TANF) program.

This policy targets state sanctuary laws by conditioning billions of dollars in federal grants on state cooperation. Affected funding includes $16.5 billion in annual TANF block grants, Supplemental Security Income funding, and specific Housing and Urban Development contracts. The Department of Justice stated that no penalties will be applied for past behavior, but states must now choose between maintaining sanctuary policies or accessing these federal funds.

Assistant Attorney General T. Elliot Gaiser and Deputy Assistant Attorney General Joshua J. Craddock defended the move, asserting that states participating in TANF accept the obligation to report persons not lawfully present in the United States.