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Trump Admin Moves to End Taxpayer-Funded Benefits for Illegal Aliens

by Aldgra Fredly
July 11, 2025
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Brooke Rollins
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(The Epoch Times)—Multiple agencies updated their policies on July 10 to block illegal immigrants from receiving federal benefits through their programs.

The move follows President Donald Trump’s executive order in February directing federal agencies to identify government-funded programs that “permit illegal aliens to obtain any cash or non-cash public benefit” and to bring those programs align with the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA), a law that prohibits illegal immigrants from getting “federal public benefits.”

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The Department of Education (DOE) said on July 10 that illegal immigrants will no longer have access to taxpayer-funded benefits in postsecondary education programs, such as Pell Grants and student loans.

Secretary of Education Linda McMahon said that DOE aims to ensure that taxpayer funds are used to support U.S. citizens and residents who legally entered the country and meet federal eligibility requirements.

“Postsecondary education programs funded by the federal government should benefit American citizens, not illegal aliens,” McMahon said in a statement.

DOE stated that it was rescinding a “Dear Colleague Letter” issued by former President Bill Clinton in 1997 that had allowed illegal immigrants to access federal public benefits for career, technical, and adult education programs.

It said the letter had “erroneously exempted” those programs from being subject to PRWORA, enabling the department to mischaracterize the law by “creating artificial distinctions between federal benefit programs based upon the method of assistance,” despite Congress making no such distinction in the legislation, according to the statement.

“Under President Trump’s leadership, hardworking American taxpayers will no longer foot the bill for illegal aliens to participate in our career, technical, or adult education programs or activities,” McMahon stated.

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DOE said it will send letters to all grantees to discuss eligibility verification and may take enforcement actions against grantees and subgrantees under PRWORA by Aug. 9.

The Department of Health and Human Services (HHS) stated that it was rescinding a 1998 interpretation of PRWORA, a move that will restrict illegal immigrants’ access to the agency’s government-funded programs.

Many HHS programs have now been reclassified as “federal public benefits” under PRWORA, including Head Start, which provides child care for lower-income families. Other programs include the Community Services Block Grant, the Projects for Assistance in Transition from Homelessness Grant Program, and the Title X Family Planning Program.

The Department of Agriculture issued a notice on July 10 clarifying its latest interpretation of the term “federal public benefit” under PRWORA, stating that illegal immigrants will no longer be eligible to receive “any grant, contract, loan, professional license, or commercial license” through its government-funded programs.

It would also block illegal immigrants’ access to “any retirement, welfare, health, disability, public or assisted housing, postsecondary education, food assistance, unemployment benefit, or any other similar benefit” that is funded by the government, according to its Federal Registry notice.

“The generosity of the American taxpayer has long been abused by faulty interpretations of 1996 welfare reform law,” Secretary of Agriculture Brooke L. Rollins stated. “Today’s notice makes clear its intent—illegal aliens should not receive government dollars.”


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The Department of Labor’s (DOL) Employment and Training Administration also released new guidelines that will block illegal immigrants from accessing federal workforce development resources and grants.

Under the new guidelines, all grantees that receive funding from the Workforce Innovation and Opportunity Act and similar programs must confirm that participants have “valid work authorization” before providing services.

The DOL stated that the public workforce development system will need to update policies and procedures to verify the work authorization status of the participants moving forward.

In his executive order, Trump stated that “numerous administrations have acted to undermine the principles and limitations directed by the Congress” since the passage of PRWORA, leading to the “improper expenditure of significant taxpayer resources.”

“Title IV of the PRWORA states that it is national policy that ‘aliens within the Nation’s borders not depend on public resources to meet their needs,’ and that ‘[i]t is a compelling government interest to remove the incentive for illegal immigration provided by the availability of public benefits’,” he stated.

Zachary Stieber contributed to this report.

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Tags: Illegal AliensLedeStickyThe Epoch TimesTop Story


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