The U.S. Department of Labor has issued a formal warning to all states, cautioning that offering unemployment benefits to undocumented immigrants could jeopardize their access to federal funding.
In a letter sent to governors, Labor Secretary Lori Chavez-DeRemer stressed that unemployment benefits are strictly reserved for individuals legally authorized to work in the United States. She noted that states extending these benefits to those without lawful status risk losing Title III Unemployment Insurance administrative grants.
The Department of Labor urged states to use the Department of Homeland Security’s Systematic Alien Verification for Entitlements (SAVE) program, which verifies the immigration status of individuals applying for benefits. The move is intended to ensure that taxpayer-funded assistance is limited to eligible recipients.
This latest directive follows broader efforts by the Trump administration to tighten enforcement of immigration laws and safeguard public benefits for American citizens and legal workers.
States have been advised to review and align their unemployment insurance programs with federal requirements to avoid penalties and potential disruptions to their funding.