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Home » Secretary of Labor Warns States Could Lose Federal Funding If Illegal Immigrants Get Unemployment Benefits
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Secretary of Labor Warns States Could Lose Federal Funding If Illegal Immigrants Get Unemployment Benefits

BLMS MEDIABy BLMS MEDIAApril 26, 2025No Comments3 Mins Read
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The decision comes after the DHS announced a comprehensive optimization of an immigrant database to verify non-citizen status nationwide.

U.S. Secretary of Labor Lori Chavez-DeRemer warned states of losing federal funding if they fail to comply with President Donald Trump’s directives on rewarding illegal immigrants with tax dollars, according to an April 25 statement issued by the Department of Labor.
“Our nation’s unemployment benefits exist solely for workers who are eligible to receive them,” Chavez-DeRemer wrote in a letter addressed to state governors. “To qualify for unemployment, one must be able and available to work, actively seeking work, and be legally authorized to accept employment in the United States. Unemployment benefits are not a handout for those in our country illegally.”

The secretary reminded all states that failing to fulfill existing legal obligations will result in the loss of federal funding through the Title III UI administrative grant.

The warning is pursuant to presidential memorandum, “Preventing Illegal Aliens from Obtaining Social Security Act Benefits,” and executive order 14218, “Ending Taxpayer Subsidization of Open Borders.”

Chavez-DeRemer also reminded states of an earlier communication by Department of Homeland Security (DHS) Secretary Kristi Noem, based on which, states can access the DHS immigration database called the Systematic Alien Verification for Entitlements (SAVE), at no cost and use it to verify the immigration status of benefit claimants.

This is a “critical tool” to ensure “illegal immigrants do not access our nation’s unemployment benefits,” said the labor secretary.

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“As a result of this change, I instructed the Employment and Training Administration (ETA) to send a letter to all State Unemployment Insurance Administrators urging them to immediately start using SAVE for every initial and continued claim filed by an individual who indicates that they are not a U.S. citizen,” he said.

The SAVE database is aimed at helping agencies at federal, state, local, and tribal levels to confirm the immigration status and citizenship of individuals before issuing benefits.

A presidential memorandum signed on April 15 directed multiple federal agencies to take steps to prevent ineligible people, such as illegal immigrants, from receiving social security benefits.
An executive order issued on Feb. 19 asked agencies and departments to take action to ensure that “no taxpayer-funded benefits go to unqualified aliens” and to “prevent taxpayer resources from acting as a magnet and fueling illegal immigration to the United States.”
According to a Department of Government Efficiency finding released earlier this month, 6,300 illegal immigrants on the terror watchlist had been receiving Medicaid and unemployment insurance.

The Trump administration’s immigration enforcement efforts have been met with challenges.

On April 24, a federal judge issued an order blocking the administration from stripping federal taxpayer funding for cities that have adopted “sanctuary” policies with regard to illegal immigrants.

State and local governments with sanctuary policies block or restrict local officials from enforcing federal laws such as those related to immigration.

The lawsuit was filed by over a dozen cities that would be affected by the cancellation of federal funding for “sanctuary” cities.

In his order, the judge said the administration’s attempt amounts to a violation of the Constitution’s separation of powers principles and banned the government from any further funding cuts.

Meanwhile, the Trump administration is looking to prevent illegal immigrants from accessing the Supplemental Nutrition Assistance Program (SNAP) or food stamps.

On April 24, the Department of Agriculture asked states to take steps to this effect.

States were asked to check the identities of people who apply for SNAP, collect their social security numbers, and verify their legal status in the United States.



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