
President Donald Trump has issued a new executive order directing federal agencies to halt the allocation of taxpayer-funded benefits to undocumented immigrants. The order cites federal law, including the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, that "generally prohibits illegal aliens from obtaining most taxpayer-funded benefits."
"My Administration will uphold the rule of law, defend against the waste of hard-earned taxpayer resources, and protect benefits for American citizens in need, including individuals with disabilities and veterans," said Trump upon signing the Executive Order.
According to a fact sheet also released by The White House on Thursday, the order instructs agencies to "identify all federally funded programs currently providing financial benefits to illegal aliens and take corrective action." It further mandates improvements in eligibility verification systems to ensure that only individuals lawfully present in the U.S. can access these benefits.
The White House announcement argues that such benefits act as an incentive for unlawful immigration and cites estimates from the Federation for American Immigration Reform (FAIR), which claims taxpayers spend "at least $182 billion annually to cover the costs incurred by the presence of 20 million illegal aliens and their children."
However, as NPR's Jasmine Garsd points out, "immigrants without legal status generally do not qualify for federal benefit", with exceptions such as emergency medical services and K-12 public education. "The order does not clarify exactly which benefits will be targeted," added Garsd, leaving the specifics to be determined by federal agencies.
The NPR report also pointed out that new research from the Cato Institute has found that noncitizen immigrants, including those unlawfully present, "consume 54% less welfare than native-born Americans":
"We find that all immigrants consumed 21 percent less welfare and entitlement benefits than native-born Americans on a per capita basis in 2022, based on data from the Survey of Income and Program Participation (SIPP). Immigrants were 14.3 percent of the US population and consumed just 11.9 percent of all means-tested welfare and entitlement benefits that year"
Besides consequences for undocumented immigrants, the order also seeks to prevent state and local governments from using federal funds to support "sanctuary" policies that limit cooperation with federal immigration enforcement. Former Deputy Cabinet Secretary to the California Governor, Jeff Le, explained to The Latin Times that this is already creating tensions at the state and local level since "it would provoke severe shortfalls beyond what was anticipated in their budget process."
Le also envisions the new Executive Order as part of "a growing interest in reforming state sanctuary laws, like the California Values Act, which would bar state and local police from these arrests, but does not entirely ban local cooperation with federal officials." Overall, Le believes the news is just the most recent effort by Trump to fulfill his campaign promises:
"the Administration has tremendous latitude to reassess administrative controls, verifications, and requirements for fund disbursements for government services to those with uncertain immigration status, especially those that have a connection to the DOJ and DHS, but likely also to USDA, HHS, and SBA loan and technical assistance"
Trump's order is part of broader efforts to escalate immigration enforcement. As outlined in The White House statement, the administration has sought to "resume the Migrant Protection Protocols," end "catch-and-release" policies, and "terminate categorical parole programs" that provide temporary legal entry to certain migrant groups.
© 2025 Latin Times. All rights reserved. Do not reproduce without permission.