	Background

		Introduction

Immigrant eligibility for major public assistance programs is an ongoing issue in Congress. (1) Prior to 1996, legal permanent residents (LPRs) were eligible for federal public assistance underterms comparable to citizens, and states were not permitted to restrict access to federal programs onthe basis of immigration status. The Personal Responsibility and Work Opportunity ReconciliationAct of 1996 ( P.L. 104-193 ) -- the original law authorizing the Temporary Assistance for NeedyFamilies (TANF) program -- dramatically changed noncitizen eligibility for public assistance. Itrestricted the eligibility of LPRs, refugees, asylees, and other noncitizens for means-tested public aid. (2) Aliens in theUnited States without authorization, commonlyreferred to as "illegal aliens," remained ineligible federal public assistance. The1996 welfare reform act gave states several options of placing further restrictions on noncitizeneligibility. (3) As Congress considersthe reauthorization of the welfare reform law, the issue of state options to restrict or expandassistance to noncitzens arises. The basic federal rules are asfollows: (4)
LPRs who entered the United States after August 22, 1996, are barred from TANF for five years, after which their coverage becomes a state option. (6) After this five-year term, refugeesand asylees may be eligible, at state option, forTANF. Refugees and asylees who meet the other program criteria are eligible for TANF benefits for five years. (11)
As of December 2002, 34 states and Washington, D.C. reported that they were exercising the option to provide TANF to LPRs after the five-year bar ends. reported that they have exercised the option to provide TANF to LPRs present in the UnitedStates before August 1996. As Table 3 indicates, 34 states and Washington, D.C. reported that they provide TANF to asylees and refugees who were residing in the United States at the time of the welfare reform act'spassage in 1996. Only 27 states and Washington, D.C., however, reported that they provide TANFto asylees and refugees who have surpassed the five-year limit for TANF and two reported that theydid not. Only WestVirginia reported a change in policy of providing TANF in 2000 but not in 2002 to asylees andrefugees who were residing in the United States at the time of the welfare reform act's passage. Funding Sources for Noncitizens

A total of 27 states and Washington, D.C. reported that they used their own funds as well as federal funds in 2000 and 2002 to cover the costs of providing TANF to those LPRs who were in theUnited States prior to the passage of the 1996 welfare reform act. An important source of funding for state assistance to noncitizens comes from the "maintenance of effort" (MOE) requirement. (12)
As of December 2002, 17 states reported using their state MOE money to provide public assistance to newly arriving LPRs who are barred from federal TANF for the first five years, as listedin Table 5 . Six states reported using their state MOE money in 2002 to provide TANF to LPRswhohad exhausted their eligibility or were currently barred: California, Colorado, Florida, New York,Utah, and Washington. Eight states reported contributing their state MOE money in 2002 to aseparate program for those LPRs who were excluded (e.g., barred first five years) or whose eligibilityhad expired (e.g., refugees after five years): California, Georgia, Hawaii, Maryland, Pennsylvania,Tennessee, Utah, and Wisconsin. That many states haveexercised one or more options to extend coverage to certain classes of LPRs has mitigated the effectsof the federal bars enacted in 1996.
The eligibility of immigrants for major public assistance programs is an ongoing issue in Congress. Prior to 1996, immigrants, i.e., legal permanent residents (LPRs), were eligible for federalpublic assistance under terms comparable to citizens, and states were not permitted to restrict accessto federal programs on the basis of immigration status. The Personal Responsibility and WorkOpportunity Reconciliation Act of 1996 ( P.L. 104-193 ) -- the original law authorizing theTemporary Assistance for Needy Families (TANF) program -- dramatically changed noncitizeneligibility for public assistance. It restricted the eligibility of LPRs, refugees, asylees, and othernoncitizens for all means-tested public aid. Aliens in the United States without authorization,commonly referred to as "illegal aliens," remained ineligible for federal public assistance. AsCongress considers the reauthorization of the welfare reform law, the issue of state options to restrictor expand assistance to immigrants arises.
The 1996 welfare reform act gave states several options of placing further restrictions on noncitizen eligibility or of expanding benefits to noncitizens. LPRs who entered the United Statesafter August 22, 1996, are barred from TANF for five years, after which their coverage becomes astate option. This five-year bar, however, does not apply to LPRs who entered the United States asrefugees and asylees. Refugees and asylees who meet the other program criteria are eligible forTANF for the first five years they are in the United States. After this period of time, refugees andasylees are only eligible for TANF at state option.
Many states have been exercising one or more of these options to extend coverage to certain classes of LPRs. As of December 2002, 34 states reported that they are exercising the option toprovide TANF to LPRs after the five-year bar ends. Thirty-five states reported that they haveexercised the option to provide TANF to LPRs present in the United States before August 1996. Furthermore, 34 states reported that they provide TANF to asylees and refugees who were residingin the United States at the time of the welfare reform act's passage in 1996. Only 27 states, however,reported that they provide TANF to asylees and refugees who have surpassed the five-year limit forTANF.
In terms of funding, 27 states and Washington, D.C. reported that they used their own funds as well as federal funds in 2000 and 2002 to cover the costs of providing TANF to those LPRs whowere in the United States prior to the passage of the 1996 welfare reform act. An important sourceof funding for state assistance to noncitizens comes from the TANF "maintenance of effort" (MOE)requirement. In 2002, 17 states reported using their state MOE money to provide public assistanceto newly arriving LPRs who are barred from federal TANF for the first five years. Six statesreported using their state MOE money in 2002 to provide TANF to LPRs who had exhausted theireligibility or were currently barred. Eight states reported contributing their state MOE money in2002 to a separate program for those LPRs who were excluded or whose eligibility had expired. This report may be updated if new data become available.