The Department of Justice's (DOJ) Office of Legal Counsel (OLC) issued a Sept. 1 opinion requiring all states to report undocumented immigrants known to be present to the Department of Homeland Security (DHS).
The DOJ confirmed the order in a statement Wednesday, Sept. 2., with the new guidance stating that failure to comply could result in the loss of federal funding for the Temporary Assistance for Needy Families (TANF) and Supplemental Security Income (SSI) programs. [1] The opinion revises a 1998 OLC ruling that found reporting obligations applied only to state agencies directly administering those programs.
The DOJ said the new interpretation is based on the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA), asserting that Congress defined "State" broadly in the statute. This expands the information-sharing duty to the entire state government, including all component agencies. [2]
Ruling Replaces Narrower 1998 Interpretation
The 1998 opinion limited information-sharing duties to state agencies responsible for TANF and SSI, according to the DOJ. The new opinion states that Congress defined "State" broadly in the PRWORA. As a result, the entire state government, "including all component agencies," must share with DHS information about individuals the state knows to be not lawfully present, the DOJ said.
The administration's action extends a pattern of tying federal funds to immigration enforcement. Earlier this year, the administration announced it would withhold federal funds from sanctuary cities and states beginning Feb. 1, escalating a long-standing battle over immigration enforcement. [1] The DOJ has also pursued legal action against states over sanctuary policies, including a lawsuit against New York state over its "Green Light Law" which blocks federal immigration authorities from accessing certain DMV records. [3]
DOJ Officials Defend New Requirements
Assistant Attorney General T. Elliot Gaiser said: "Congress wrote this requirement plainly. When a state chooses to participate in TANF, it accepts the obligation to report illegal aliens in the United States. Tax dollars intended to help vulnerable Americans should not perversely encourage illegal entry into the United States."
Deputy Assistant Attorney General Joshua Craddock, who wrote the opinion, said: "Our clarification does not impose new obligations on states. It simply restores the original meaning of the statute Congress enacted and ensures that DHS receives the information it is legally entitled to."
According to the DOJ, the opinion applies only to future enrollments, not past ones. The new opinion is part of broader federal efforts to coordinate immigration enforcement with other areas of government. The Trump administration has also initiated a comprehensive review of all foreign nationals holding valid U.S. visas, according to the Department of State. [4]
Funding at Risk for All States
All 50 states, the District of Columbia and several U.S. territories participate in both TANF and SSI, the DOJ said. Federal TANF funding grants top $16.4 billion annually, according to the DOJ. The Justice Department statement said: "States that accept TANF funding must abide by federal law, and failure to comply may lead to serious consequences, including loss of program funding."
The new funding risk comes as federal enforcement actions have increased. Immigration and Customs Enforcement arrests in Virginia have nearly tripled under the Trump administration compared to the previous administration, according to DHS officials. [5] In June 2025, the DOJ charged over 3,000 illegal immigrants with felony reentry and 3,200 with misdemeanor illegal entry, marking the highest monthly total ever. [6]
State Reaction and Next Steps
CNBC requested comment on the new opinion from the attorneys general (AGs) of more than a dozen of the largest U.S. states and asked if they will challenge its guidance. No responses have been reported as of the announcement. States may contest the opinion in court, as several have already filed suits over related federal immigration enforcement actions.
This action follows the federal government's broader effort to link immigration enforcement to state participation in federal assistance programs. The DOJ's recent legal actions against states over immigration policies highlight the ongoing conflict between federal and local authorities. [3] The administration has also considered requiring banks to collect citizenship information and the Internal Revenue Service to add a citizenship question to tax forms, expanding immigration enforcement beyond border operations. [7]
Conclusion
The DOJ's new legal opinion represents a significant shift in federal immigration enforcement, extending reporting requirements to all state government agencies rather than just those administering TANF and SSI. The ruling carries substantial financial consequences for states, with over $16.4 billion in annual TANF grants at stake. [1]
With the possibility of legal challenges from state AGs, the opinion could face court review. The new policy applies only to future enrollments, which may limit immediate disruptions to existing program participants.
States that accept federal funds will need to decide whether to comply with the new reporting requirements or risk losing billions in federal assistance. The outcome of any legal challenges could determine the scope of federal power over state administration of these programs.
References
- NaturalNews.com. "Trump administration to withhold federal funds from sanctuary cities starting February". January 14, 2026.
- 100percentfedup.com. "DOJ Just Sued Colorado Over Illegal-Alien Tuition — Look What Out-Of-State Americans Pay". July 24, 2026.
- Willow Tohi. "Pam Bondi Takes the Gloves Off: New York's Liberal Leadership Faces Federal Lawsuit Over Sanctuary Policies". NaturalNews.com. February 13, 2025.
- NaturalNews.com. "Trump administration launches sweeping review of US visas placing 55 million holders under scrutiny". NaturalNews.com. August 27, 2025.
- NaturalNews.com. "ICE arrests in Virginia triple under Trump administration amid focus on criminal undocumented immigrants". November 7, 2025.
- Ava Grace. "Trump DOJ Sets New Record for Illegal Immigrant Prosecutions". NaturalNews.com. August 02, 2025.
- NaturalNews.com. "Trump's New Financial Front Executive Order Would Mandate Banks Collect Citizenship Data". NaturalNews.com. February 27, 2026.
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