Labor Secretary Warns States of Funding Loss for Allowing Illegal Immigrants Unemployment Benefits

Labor Secretary Lori Chavez-DeRemer warned state governors that their states could lose federal funding if they allow illegal immigrants to collect unemployment benefits. In letters referencing President Donald Trump’s executive actions, she emphasized that unemployment benefits are reserved for those legally authorized to work in the U.S. and that noncompliance may result in the loss of Title III Unemployment Insurance administrative grants. Chavez-DeRemer urged states to use the Department of Homeland Security’s SAVE database to verify the immigration status of all applicants, describing this as a critical tool to prevent unauthorized access to benefits. The move is part of a broader Trump administration push to ensure that public assistance programs, including SNAP and HUD-administered housing, are not extended to individuals in the country illegally. Some states, like California, have already rejected proposals to expand unemployment aid to undocumented immigrants. The directive underscores the administration’s focus on tightening enforcement of existing benefit eligibility laws to deter illegal immigration.