The US Department of Justice has warned states they risk losing billions of dollars in federal welfare funding unless they report individuals known to be in the country illegally to the Department of Homeland Security. A legal opinion issued by the DOJ's Office of Legal Counsel on Wednesday reverses a 1998 interpretation that had confined this reporting duty to the specific state agencies administering welfare payments, extending it instead to any state body — including universities and motor vehicle departments — that becomes aware of an individual's unlawful status. The administration says the move supports President Donald Trump's wider immigration enforcement drive, though it is likely to draw legal challenges from Democrat-led states that have already sued over related data-sharing efforts.

The requirement applies to all 50 states and Washington, D.C., through their participation in two programmes: Temporary Assistance for Needy Families, which distributes over $16.5 billion in federal grants annually, and Supplemental Security Income, worth more than $60 billion a year in federal benefits — even though illegal migrants are not themselves eligible for either scheme. A DOJ official said non-compliance "may lead to serious consequences, including loss of program funding." Courts have previously blocked some efforts to share migrant data with DHS while permitting others, such as access to certain Medicaid records, suggesting the new policy could face a mixed legal reception.