Most States Provide Optional Federal Benefits to Pre-Reform and New Immigrants

States have the option of continuing TANF and Medicaid benefits to pre-reform immigrants and providing these benefits to new immigrants after 5 years of U.S. residency. Limited Number of States Provide Benefits to New Immigrants During 5-Year Bar

About a third of the states provide state-funded temporary assistance to needy families, medical assistance, or both to new immigrants during their 5-year bar from federal programs. California, Maryland, Massachusetts, and Washington provide both state-funded cash and medical assistance, while New Jersey and Virginia provide medical assistance. States’ Approaches to Providing Food Assistance to Immigrants

With the continuation of TANF, Medicaid, and SSI benefits to pre-reform immigrants, the largest federal benefit loss for most immigrants is the termination of food stamps. At the time of our review, some states had created state-funded programs that were replacing benefits for about one-quarter of those estimated to no longer be eligible for federal food stamps nationwide. This group of immigrants consists mostly of children, the disabled, and the elderly— those groups who were most often targeted in the state-funded programs. Almost one-fifth of those no longer eligible were immigrant children. The most recent legislation (P.L. 105-185) restores federal food stamp eligibility, effective November 1, 1998, to 250,000—mostly children, the disabled, and the elderly—of the estimated 820,000 immigrants no longer eligible for food stamps in fiscal year 1999, according to USDA. Some States Replace Lost Food Stamp Benefits for Immigrants

At the time of our review, 14 states representing almost 90 percent of immigrants nationwide receiving food stamps in 1996 were replacing food stamp benefits with state-funded benefits to a portion of immigrants no longer eligible. The state-funded food stamp programs generally target the same groups whose eligibility for federal food stamp benefits has been restored. States’ responses to the restoring of these benefits, such as changing eligibility for state-funded programs, are unknown at this time. States Continue to Face Challenges Implementing New Restrictions for Immigrants

The eligibility changes under welfare reform for immigrants expanded states’ administrative responsibilities and added financial responsibilities for those states choosing to provide replacement benefits. In addition to the challenges all states face, those providing state-funded programs face challenges obtaining future funding and managing the different eligibility rules and funding streams of both federal and state programs. States Face Administrative Challenges Following Restrictions

Implementing the new restrictions required the states and localities to educate welfare workers and immigrant recipients about the eligibility changes and to recertify the eligibility of immigrant recipients. States’ more recent and future challenges include implementing the new alien status verification requirements—verifying the citizenship or immigration status of applicants for all federal public benefits, implementing the new sponsor deeming requirements, and enforcing affidavits of support for immigrants sponsored by family members. The states are focusing their welfare assistance efforts on immigrants living in the United States before welfare reform and have not yet focused much attention on the possible needs of new immigrants. Along with choosing to continue TANF and Medicaid benefits for pre-reform immigrants and to provide these benefits to new immigrants after the federal 5-year bar, New Jersey devised a new state-funded food stamp program to replace lost federal benefits and a statewide naturalization assistance program. Additional copies are $2 each.
Why GAO Did This Study

Pursuant to a congressional request, GAO reviewed Title IV of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 and the impact its restrictions would have on immigrant children and their families, focusing on: (1) the options states chose regarding Temporary Assistance for Needy Families (TANF) and Medicaid benefits for immigrants and state-funded assistance available to new immigrants during the 5-year bar; (2) for restricted federal programs, Supplemental Security Income (SSI), and food stamps, the number of immigrants, including children, whose federal benefits have been terminated, and the state-funded assistance available to them; and (3) the major implementation issues and challenges state agencies face in administering the provisions changing welfare assistance to immigrants.

What GAO Found

GAO noted that: (1) although the states could have dropped immigrants from their welfare rolls, most states have chosen to provide some welfare benefit to part of this population; (2) nearly all states have chosen to continue providing federal TANF and Medicaid benefits to pre-reform immigrants and to provide these benefits to new immigrants after 5 years of U.S. residency; (3) about a third of the states use state funds to provide similar benefits to some new immigrants during the 5-year bar; (4) among these states are 6 of the 10 where most immigrants live--2 states provide state-funded medical assistance and 4 states provide both state-funded cash and medical assistance; (5) with the states' continuation of TANF and Medicaid benefits to pre-reform immigrants and the retention of these immigrants' SSI benefits, the greatest economic impact of welfare reform for most of these immigrants is the loss of federally funded food stamp benefits; (6) after the implementation of the food stamp restrictions, an estimated 940,000 immigrants receiving food stamps in 1997 lost eligibility for receiving them; (7) almost one-fifth of this group consisted of immigrant children; (8) at the time of GAO's review, 14 states had created state-funded food stamp programs serving about a quarter of this immigrant group nationwide--primarily children, the disabled, and the elderly; (9) fewer states, however, offer state-funded food stamps to new immigrants; (10) the most recent legislation will restore food stamp eligibility to an estimated 250,000 immigrants, mostly children, the disabled, and the elderly, the same groups targeted by state-funded food stamp programs; (11) states' responses to the restoring of these benefits, such as changing eligibility for state-funded programs, are unknown at this time; (12) with the implementation of the welfare reform restrictions for immigrants, states and local governments face added responsibilities; (13) states' future challenges include verifying the citizenship or immigration status of applicants for all federal public benefits and enforcing affidavits of support for new immigrants sponsored by relatives; (14) the states GAO visited anticipated major systems changes and other additional work to implement the new verification procedures; (15) furthermore, states choosing to provide assistance to immigrants no longer eligible for federal benefits are uncertain about future funding for these programs; and (16) these states also face additional challenges managing funding streams and determining eligibility for federal and state programs.