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By Billal Rahman
Immigration Reporter
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President Donald Trump has signed an executive order ending federal benefits for people in the country illegally.
Representative Richard Hudson, a North Carolina Republican, told Newsweek that Trump's new executive order will "defend the taxpayers."
Why It Matters
Trump made strict immigration measures a core component of his policy agenda. Along with carrying out mass deportations, his second administration has vowed to prosecute anyone who impedes their immigration enforcement operations.
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What To Know
The Trump administration argued the executive order is to make sure "taxpayer resources are used to protect the interests of American citizens, not illegal aliens."
"My Administration will uphold the rule of law, defend against the waste of hard-earned taxpayer resources, and protect benefits for American citizens in need, including individuals with disabilities and veterans," the order reads.
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It was unclear which benefits would be affected. In general, individuals in the country illegally do not qualify for most benefits, except for emergency medical care. Furthermore, a 1982 Supreme Court ruling ensures that all children, regardless of immigration status, have the right to a free K-12 public education.
The order will require all federal agencies and departments to conduct a thorough review of government programs to identify any that provide financial aid or other benefits to undocumented individuals. Agencies will then be directed to take "corrective action" to ensure that federal funds are not being used to support sanctuary policies or assist with illegal immigration.
"I would say I support what he's doing," Hudson said. "I think it is, again, it's important that number one, we preserve these programs for the vulnerable individuals who need it. Secondly, you've got to defend the taxpayers. I mean, this is, you know, their money is not intended to go to this.
"This is a huge magnet for illegals to come here if they know they can get these benefits."
A report from the Congressional Budget Office (CBO) estimates that federal and state spending on Emergency Medicaid for undocumented immigrants reached $27 billion between fiscal years 2017 and 2023, according to KFF. This accounted for less than 1 percent of total Medicaid spending over the period, with some years falling below 0.5 percent. In FY 2023, Emergency Medicaid expenditures totaled $3.8 billion, representing 0.4 percent of overall Medicaid spending.
According to an October 2024 analysis by the Congressional Budget Office (CBO), federal and state taxpayers have spent over $16.2 billion on Medicaid-funded emergency services for undocumented immigrants under the Biden administration.
The order points out that a 1996 welfare reform law prohibited most public benefits for individuals in the country illegally but claimed that the law had gradually weakened. "Over the last 4 years, in particular, the prior administration repeatedly undercut the goals of that law, resulting in the improper expenditure of significant taxpayer resources."
Trump's remarks seem aimed at former President Joe Biden's broad use of parole authority to temporarily admit individuals into the country. This includes over 900,000 people who entered through the CBP One online appointment app at U.S.-Mexico border crossings and more than 500,000 Cubans, Haitians, Nicaraguans, and Venezuelans who traveled to the U.S. at their own expense with a financial sponsor. Trump swiftly ended both programs.
Biden also granted parole to nearly 300,000 individuals from Ukraine and Afghanistan.
According to the Center for Immigration Studies (CIS), providing welfare benefits to one million undocumented immigrants could cost American taxpayers an additional $3 billion annually. CIS, which advocates for lower immigration levels, argues that illegal immigrant households place a significant fiscal burden on public resources.
However, organizations like the Cato Institute challenge these claims, arguing that CIS overstates costs by including U.S.-born children of immigrants and not fully accounting for taxes paid by undocumented workers. Cato and other researchers suggest that, in the long run, immigrants—both legal and undocumented—contribute more in taxes than they receive in public benefits. A recent study conducted by the Cato Institute found that immigrants consume significantly less welfare than those born in the U.S.
The Federation for American Immigration Reform (FAIR) estimates that illegal immigration costs American taxpayers $182 billion annually, including $66.5 billion in federal expenses and $115.6 billion in state and local costs. However, this figure has been criticized for potential overestimation, as critics argue FAIR includes U.S.-born children of undocumented immigrants and does not fully account for the taxes they pay. Organizations like the Cato Institute contend that FAIR's methodology may inflate costs while also overlooking the economic contributions of undocumented workers.
Meanwhile, since 2021, FEMA has allocated over $1 billion to support state and local governments, as well as nonprofits, in providing shelter and services for migrants released from DHS custody. This funding, distributed through programs like the Shelter and Services Program (SSP), does not provide direct financial aid to undocumented individuals and is separate from FEMA's disaster relief efforts.
The Department of Government Efficiency (DOGE) claims U.S. taxpayers spent more than $150 billion on immigrants in the U.S. illegally in 2023.
What People Are Saying
Greg Abbott's Press Secretary Andrew Mahaleris told Newsweek: "Governor Abbott fully supports President Trump ending taxpayer subsidization of illegal immigration. For too long, benefits to illegal immigrants have served as a magnet to entice migrants from over 150 countries to risk their lives entering the country illegally. Texas will continue using every tool and strategy to aid in the Trump Administration's deterrence and deportation of illegal immigrants to protect our state and the nation.
White House Press Secretary Karoline Leavitt said in a post on X: "Can confirm! No more federal benefits to illegal aliens."
Superintendent Ryan Walters said in a social media post: "@POTUS has signed an executive order to TERMINATE all taxpayer-funded benefits for illegal aliens and END the subsidization of open borders. Oklahoma taxpayers should never have to foot the bill for Biden's border crisis. This is a huge win for hardworking Americans!."
What Happens Next
Federal agencies will begin reviewing their programs to identify and eliminate benefits provided to undocumented individuals. This process may lead to major policy changes and potential legal challenges as the administration enforces the new directive.
Update 2/20/25, 1 p.m. ET: This story was updated with comment from Representative Richard Hudson.
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