DOJ Tightens Rules: States Must Report Undocumented Residents to DHS to Preserve Federal Welfare Funds

The Department of Justice issued a new Office of Legal Counsel opinion expanding the obligation for states that accept TANF and SSI funds to report individuals not lawfully present to DHS, extending to the entire state government rather than just specific agencies. The guidance is prospective, and noncompliance could jeopardize federal funding. It rests on a broad definition of “State” in PRWORA 1996, meaning all state entities participating in TANF/SSI must share information with DHS. All 50 states, DC, and several territories participate in TANF/SSI, with federal TANF funding totaling over $16.4 billion annually. The opinion clarifies and restores the statute’s original intent without imposing retroactive obligations.