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States now must report undocumented immigrants to DHS or risk federal funding, DOJ says

The opinion broadens reporting duties to every state agency and threatens billions in federal welfare funding if states do not comply, officials said.

  • On Wednesday, the Justice Department issued a new legal opinion requiring all state agencies to report known undocumented immigrants to the Department of Homeland Security if states accept federal welfare funding, threatening to withhold federal aid for noncompliance.
  • Deputy Assistant Attorney General Joshua Craddock withdrew a 1998 Office of Legal Counsel opinion, arguing it improperly narrowed the 1996 Personal Responsibility and Work Opportunity Reconciliation Act by limiting reporting to agencies administering welfare programs.
  • The mandate now extends to all state bodies, including universities and departments of motor vehicles, protecting federal grants exceeding $16.4 billion in annual TANF funding and $60 billion in SSI benefits.
  • Democratic-Led states are expected to challenge the mandate, having previously sued to block federal access to welfare recipient data, setting the stage for litigation over the scope of federal authority to compel state cooperation.
  • This shift aligns with President Donald Trump's broader immigration crackdown, which has involved deploying agents to cities and penalizing states limiting cooperation with federal authorities, marking significant escalation in enforcement through funding conditions.
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The US Department of Justice has threatened states that do not report illegal immigrants that they could lose billions of dollars from social assistance funds, shows a legal opinion consulted by the agency Reuters, quotes Agerpres. The Legal Office of the Department of Justice states that states that receive funding from two vital social assistance funds must ...

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Politico broke the news in Arlington County, United States on Wednesday, September 2, 2026.
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