HomePoliticsStates Face Federal Funding Threat Over Unemployment Benefits for Illegal Immigrants

States Face Federal Funding Threat Over Unemployment Benefits for Illegal Immigrants

Sarah Johnson

Sarah Johnson

April 26, 2025

3 min read

Brief

The Labor Department warns states to stop providing unemployment benefits to illegal immigrants, threatening federal funding cuts and urging strict verification of legal work authorization.

The Labor Department is turning up the heat on states that let illegal immigrants collect unemployment benefits, warning that federal funding could be on the chopping block if they don’t fall in line. Labor Secretary Lori Chavez-DeRemer sent a letter to governors stressing that unemployment assistance is strictly for those who are legally authorized to work in the U.S. – not for people who snuck across the border hoping for a payout.

Chavez-DeRemer didn’t mince words: "Our nation’s unemployment benefits exist solely for workers who are eligible to receive them. 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." She added that unemployment checks aren’t a "handout for those in our country illegally." That’s about as clear as a ‘no trespassing’ sign on a private lawn.

To keep things tight, Chavez-DeRemer is pushing states to use the SAVE database, an online tool for government agencies to verify immigration status before doling out benefits or licenses. The message? If you want the federal dollars, you better check those papers.

This move is just one piece of the Trump administration’s broader crackdown on illegal immigrants accessing taxpayer-funded programs. Just a day ago, Agriculture Secretary Brooke Rollins announced that the USDA is taking steps to block illegal immigrants from receiving Supplemental Nutrition Assistance Program (SNAP) benefits, better known as food stamps. According to Rollins, these nutrition programs are meant for "the most vulnerable Americans," and letting ineligible applicants cash in is, as she put it, "outrageous."

Meanwhile, the Department of Housing and Urban Development (HUD) is also tightening its purse strings. Secretary Scott Turner recently declared that government-funded housing should prioritize American citizens, especially given that HUD already serves just a fraction of those eligible.

Turner didn’t hold back: "At HUD, we only serve one out of four Americans that we should be serving, and that has to come to an end. We are making it our only priority that American citizens will benefit from hard-working American taxpayer dollars."

With federal departments moving in lockstep and the threat of funding cuts hanging overhead, states have a clear choice: verify or risk losing serious cash. The message from D.C. is loud and clear, and nobody’s pretending there’s any wiggle room left on this one.

Topics

Labor Departmentunemployment benefitsillegal immigrantsfederal fundingSAVE databasework authorizationSNAP benefitsHUDgovernment crackdownstates compliancePoliticsUS NewsImmigrationFederal Funding

Editor's Comments

So, if states want to keep those precious federal funds, it’s time to play immigration-status bingo with every unemployment claim. Honestly, with all these agencies cracking down, it feels like there’s a new game show in town: 'Who Wants to Be a Verified American?' Spoiler alert: If you can’t prove you’re eligible, you’re getting voted off the benefits island.

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