DOJ legal opinion expanded welfare-reporting mandate to all state agencies, tying future TANF/SSI funding to reporting immigrants to DHS

On September 2, 2026, the U.S. Department of Justice's Office of Legal Counsel issued a legal opinion, authored by Deputy Assistant Attorney General Joshua Craddock, concluding that all state agencies -- not only those administering welfare benefits -- must report individuals a state believes are unlawfully present to the Department of Homeland Security as a condition of continued Temporary Assistance for Needy Families (TANF) and Supplemental Security Income (SSI) funding. The opinion reverses a narrower 1998 OLC interpretation that limited the reporting duty to the specific agencies administering those programs; DOJ said states will not lose funding already disbursed but risk losing future TANF and SSI dollars if they do not comply.

On September 2, 2026, the U.S. Department of Justice's Office of Legal Counsel (OLC) issued a 19-page opinion, authored by Deputy Assistant Attorney General Joshua Craddock, concluding that the reporting requirement in the 1996 federal welfare-reform law extends to every agency of a state government, not merely the specific agencies that administer Temporary Assistance for Needy Families (TANF) and Supplemental Security Income (SSI). The opinion directs states receiving TANF or SSI funds to report to the Department of Homeland Security any individual a state agency believes is unlawfully present in the country, reversing a 1998 OLC opinion that had confined the reporting duty to the welfare-administering agencies themselves.

Every state, along with the District of Columbia and U.S. territories, receives TANF or SSI funding, so the reinterpretation reaches state agencies with no connection to welfare administration -- motor-vehicle departments, schools, and state and local police, among others. DOJ said states already out of compliance will not have existing funding clawed back, but that future TANF and SSI dollars are contingent on adopting the broadened reporting practice going forward.

Craddock characterized the opinion as a "clarification" restoring Congress's original intent rather than a new mandate, and OLC head T. Elliot Gaiser said in a statement that "Congress wrote this requirement plainly." NOTUS, NBC News and CNN reported the opinion is the latest in a series of Trump-administration attempts to condition federal funding on state cooperation with immigration enforcement -- attempts federal judges have, per NOTUS's reporting, "consistently ruled against" in litigation over other funding streams, including law-enforcement and disaster-relief grants.

Congress alone sets the terms attached to federal money, and an agency cannot use its own legal reinterpretation to widen those terms into a coercive lever for a policy it lacks authority to mandate directly. DOJ's Office of Legal Counsel reinterpreted a decades-old welfare-reporting statute to reach every agency in a state government, not just the ones it was written for, and tied continued TANF and SSI funding to compliance. This archive records another instance of the executive substituting funding threats for legislation to compel an immigration-enforcement outcome, echoing prior funding-leverage attempts federal courts have already rejected.

  1. DOJ Says States That Fail to Report Undocumented Immigrants Could Lose Federal FundingNOTUS primary accessed September 3, 2026
  2. DOJ says states have to report undocumented immigrants to get federal fundingNBC News primary accessed September 3, 2026
  3. States must provide info on undocumented immigrants or lose federal safety-net funds, Trump admin saysCNN primary accessed September 3, 2026
  4. States now must report undocumented immigrants to DHS or risk federal funding, DOJ saysCNBC secondary accessed September 3, 2026