To identify the characteristics of immigrant recipients who could lose benefits under the proposals, we reviewed current SSI and AFDC policies and four key welfare reform proposals. Legal Immigrants More Likely to Receive Benefits Than Citizens

Overall, immigrants as a group are more likely than citizens to be receiving SSI or AFDC benefits. Researchers have noted that immigrant households have larger numbers of small children and elderly or disabled persons and contain more members with relatively little schooling and low skill levels. Immigrants Represent a Growing Percentage of SSI and AFDC Caseloads

As a percentage of all SSI recipients, immigrants receiving SSI benefits have increased dramatically. In total, immigrants received an estimated $3.3 billion in SSI benefits in 1993. Between 1983 and 1993, the number of immigrants receiving aged benefits quadrupled (106,600 to 416,420), while the number of citizens receiving aged benefits decreased by 25 percent (1,408,800 to 1,058,432). In 1993, almost 722,000 immigrants, including adults and children, received an estimated $1.2 billion in AFDC benefits. Moreover, immigrant recipients are more likely than citizen recipients to be 75 years old or older. 2.) 3.) Most immigrants receiving AFDC were either lawful permanent residents or refugees or asylees. 4.) The Impacts of Welfare Reform Proposals Vary

The estimated number of immigrants affected by welfare reform proposals varies. 4, only two groups of immigrants would remain eligible for benefits—refugees residing in the country fewer than 6 years and lawful permanent residents 75 years old or older who have resided in the United States for at least 5 years. CBO estimated that federal savings from this proposal for the SSI and AFDC programs would be $9.2 billion and $1 billion, respectively, over the period 1996-99. Recognizing these limitations, CBO estimated that the administration’s proposal would save nearly $2.9 billion in SSI, Medicaid, and AFDC benefits over the next 4 years. Immigrants may also change their naturalization and immigration patterns.
Why GAO Did This Study

Pursuant to a congressional request, GAO reviewed the effect of proposed welfare reform legislation on legal immigrant welfare recipients, focusing on: (1) legal immigrants' and citizens' use of the Supplemental Security Income (SSI) and Aid to Families with Dependent Children (AFDC) programs; (2) the numbers of legal immigrants receiving SSI or AFDC benefits; (3) the immigrant recipients that could lose benefits under the welfare reform proposals; and (4) the possible impacts of restricting immigrants' SSI and AFDC benefits on federal welfare programs.

What GAO Found

GAO found that: (1) a greater percentage of legal immigrants receive SSI or AFDC benefits than do citizens; (2) immigrants tend to be poorer than citizens and have more small children, more elderly or disabled family members, and more family members with minimal education and skill levels; (3) the number of immigrants receiving SSI benefits more than quadrupled between 1983 and 1993 and these immigrants now comprise over 11 percent of all SSI recipients; (4) legal immigrants received an estimated $1.2 billion in AFDC benefits in 1993; (5) most immigrant recipients are lawful permanent residents or refugees and are 75 years old or older; (6) one welfare reform proposal would save $9.2 billion in SSI benefits and $1 billion in AFDC benefits over 4 years by dropping about 500,000 immigrant recipients from each program; (7) the Administration's proposal would affect fewer immigrants and extend the length of sponsorship and tighten eligibility standards; (8) the two welfare reform proposals could save between $3.3 billion and $21.7 billion over 4 years; and (9) the loss of benefits could cause immigrants to change their immigration, work, and naturalization patterns or to turn to state welfare programs for support.