United States General Accounting Office

GAO Report to the Ranking Minority Member,

Subcommittee on Human Resources,

Committee on Ways and Means, House

of Representatives

February 1995 WELFARE REFORM

Implications of

Proposals on Legal

Immigrants’ Benefits

GAO/HEHS-95-58

GAO United States

General Accounting Office

Washington, D.C. 20548

Health, Education, and

Human Services Division

B-257790 

February 2, 1995

The Honorable Harold E. Ford

Ranking Minority Member

Subcommittee on Human Resources

Committee on Ways and Means

House of Representatives

Dear Mr. Ford:

During the past year, several bills were introduced in the Congress to

reform the nation’s welfare system. Most of these reforms call for

providing increased education, training, and supportive services to welfare

recipients. To finance the increased costs of these reforms, some

proposals, such as H.R. 4—currently before the 104th Congress—would

restrict public assistance benefits to certain groups of legal immigrants.

Such proposals may have stemmed from concerns raised about the sheer

number of legal immigrants receiving benefits, about 1.4 million in 1993.

Other proposals, such as the administration’s proposal, would require

certain categories of immigrants to wait longer before receiving public

assistance. These proposals stem from concerns raised about the number

of immigrants that end up receiving public assistance, even though they

were admitted into the country with a promise of financial support from a

sponsor.1

These proposals would affect several public assistance programs and you

specifically asked us to focus on two key programs: Supplemental Security

Income (SSI) and Aid to Families with Dependent Children (AFDC).2

 The SSI

program provides cash benefits to poor aged, disabled, and blind

individuals. SSI is federally funded, with some states providing a

supplement. In 1993, federal and state expenditures for the almost

6 million SSI recipients were nearly $24 billion. The AFDC program provides

cash benefits to poor families with children who lack support from one or

both of their parents and is jointly funded with federal and state dollars.

1

As a condition of admittance to the United States, some immigrants are required to have a financial

sponsor willing to provide financial support for 3 years.

2

Under some proposals, legal immigrants would also lose eligibility for a wide range of assistance,

including food stamps, Medicaid, the Earned Income Tax Credit, and low-income housing.

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In 1993, about 14.1 million recipients received over $22 billion in federal

and state AFDC payments. A recipient cannot receive both SSI and AFDC

benefits.3

This report examines (1) how legal immigrants’ utilization of SSI and AFDC

compares with that of citizens, (2) the trends in the numbers of legal

immigrants receiving SSI or AFDC benefits, (3) the characteristics of

immigrant recipients relevant to determining eligibility under the welfare

reform proposals, and (4) the possible impacts of the proposals to restrict

immigrants’ SSI and AFDC benefits on federal welfare programs. We also

discuss possible impacts of the proposals on state general assistance

programs and immigrants’ actions in response to these proposals. (See pp.

14-15.)

Results in Brief Our work shows that the percentage of immigrants who receive SSI or AFDC

is higher than the percentage of citizens receiving these benefits—6

percent of all immigrants receive benefits compared with 3.4 percent of all

citizens. Most immigrant recipients live in four states: California, New

York, Florida, and Texas; over one-half of all immigrant recipients live in

California. Between 1983 and 1993, the number of immigrants receiving SSI

more than quadrupled, increasing from about 151,000 to about 683,000.

During this time period, immigrants grew from about 4 percent of all SSI

recipients to over 11 percent. The growth was greatest in the aged

program. As a percentage of all adult AFDC recipients, immigrants grew

from about 5 percent to 8 percent. In all, immigrants received an estimated

$3.3 billion in SSI benefits and $1.2 billion in AFDC benefits in 1993.

Most immigrant recipients are lawful permanent residents or refugees, but

other characteristics of immigrants receiving SSI and AFDC vary. The two

programs serve different populations. The number of immigrants receiving

SSI aged benefits—available to those 65 years old and older—has increased

dramatically. Within the aged program, a growing number of immigrant

recipients are 75 years old and older. Most AFDC families with immigrant

recipients also contain citizen recipients. Almost a third of immigrants

receiving AFDC are refugees. However, data limitations provide an

incomplete picture of immigrant SSI and AFDC recipients. For example,

computerized information is not available on the number of immigrants

with financial sponsors or the sponsors’ income.

3

While no recipient may receive both SSI and AFDC benefits, families receiving AFDC may have one or

more family members who receive SSI. For purposes of determining the amount of AFDC benefits the

family may receive, an SSI recipient is not considered a part of the family. See the glossary for program

definitions.

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According to Congressional Budget Office (CBO) estimates, H.R. 4 would

save $9.2 billion from the SSI program and $1 billion from the AFDC program

over 4 years. Of immigrants receiving benefits in 1993, we estimate that

over 522,000 SSI recipients and over 492,000 AFDC recipients would fall into

categories where they would lose eligibility under this proposal—all

immigrants would lose eligibility except lawful permanent residents 75

years old or older who have been in the United States at least 5 years and

refugees who have been in the United States fewer than 6 years. The

administration’s proposal would affect fewer immigrant recipients by

extending the length of time a sponsor’s income is deemed available for

the immigrant and tightening eligibility standards. CBO estimates that the

two welfare reform proposals could save between $3.3 billion and

$21.7 billion over 4 years from a variety of programs.

Background Many categories of legal immigrants are currently eligible for SSI and AFDC

benefits. SSI provides benefits to three groups of needy individuals: aged

(65 years old and older), blind, and disabled. AFDC provides benefits to

needy families with children. Immigrants eligible for assistance include

those classified by the Immigration and Naturalization Service (INS) as

lawful permanent residents. Also eligible for benefits are certain other

legally admitted immigrants, classified by public assistance programs as

permanently residing in the United States under color of law (PRUCOL).4

Under the SSI and AFDC programs, the PRUCOL category includes immigrants,

such as refugees, asylees and certain others whose deportation INS does

not plan to enforce. (See glossary.) However, a few small categories of

immigrants considered as PRUCOL are not uniform between the two

programs.

Some legal immigrants are admitted into the country under the financial

sponsorship of a U.S. resident. The Immigration and Nationality Act of

1952, as amended, provides for the exclusion of any alien who is likely to

become a public charge. Aliens can show prospective self-sufficiency

through (1) proof of sufficient personal resources, (2) an offer of a job

with adequate compensation, (3) posting of a public charge bond, or (4) an

affidavit of support submitted on their behalf by a sponsor who preferably

is a U.S. citizen or permanent resident. By signing the affidavit of support,

sponsors attest to their ability and willingness to provide financial

assistance to the immigrant. However, several courts have ruled that these

affidavits of support are not legally binding.

4

Implementing SSI regulations define a PRUCOL immigrant as an alien residing in the United States

with the knowledge and permission of the INS and whose departure the INS does not contemplate

enforcing. (20 C.F.R. § 416.1618.)

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Concerned about the number of sponsored immigrants receiving public

assistance, the Congress amended program statutes to include a

sponsor-to-alien deeming period; that is, if a sponsored immigrant applies

for public assistance before a certain time period, a portion of the

sponsor’s income and resources are deemed or assumed to be available

for the immigrant’s use (whether or not they are available in fact). This

deeming provision is used to determine eligibility as well as benefit

amount. For the AFDC program, this period is 3 years after admission to the

United States as a permanent resident. In 1993, the deeming period for the

SSI program was temporarily extended from 3 to 5 years, starting in

January 1994 through September 1996. The deeming provisions do not

apply if an immigrant becomes blind or disabled after admission to the

United States as a permanent resident. Affidavits of support were

amended so sponsors currently agree to provide financial support to the

immigrant for 3 years.

The Responsibility and Empowerment Support Program Providing

Employment, Child Care and Training Act of 1994, reintroduced as H.R. 4,

the Personal Responsibility Act of 1995, introduced by a group of

Republicans during the 104th Congress as part of their “Contract With

America,” would eliminate most legal immigrants’ eligibility for SSI and

AFDC, as well as food stamps, Medicaid, foster care and adoption

assistance, education programs and numerous other public assistance

programs. Two groups would remain eligible: (1) refugees in the country

fewer than 6 years and (2) lawful permanent residents who are 75 years

old and older and who have been in the country 5 years or more. The

provisions of this proposal would go into effect 1 year after enactment

with no grandfathering provision.

In contrast, the administration’s proposal would increase the time period

that sponsors’ incomes would be deemed available to immigrants

receiving AFDC, SSI, or food stamps to 5 years. After the fifth year,

sponsored immigrants would still receive benefits if their sponsor’s

income was below the U.S. median income. The proposal would become

effective as of October 1995 and contains a grandfather clause protecting

current recipients. Table 1 provides more detailed information on these

two proposals.

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Table 1: Comparison of Two Welfare

Reform Proposals Current policy H.R. 4 Administration

Eligibility

Lawful permanent resident

Refugees

Asylees

Other PRUCOL

(categories vary slightly

between SSI and AFDC

programs)

Lawful permanent resident,

75 years old or older, and

resided in the United States

at least 5 years.

Refugees

Lawful permanent resident

Refugees

Asylees

Other PRUCOL (stricter,

standardized categories for

all programs)

Time Limits for Receipt

No limits specified Six years after entering the

United States, refugees are

no longer eligible.

Five years after entering the

United States, sponsored

immigrants are not eligible

unless their sponsor’s

income is below the U.S.

median family income.

Deeming

SSI: Recently extended from

3 to 5 years (reverts back in

1996).

AFDC: 3 years.

Not applicable. Five-year deeming period

for both SSI and AFDC.

Other

Public assistance agencies

must report illegal aliens

with citizen children to INS.

Goes into effect 1 year after

enactment with no

grandfathering provision.

Allows state and local

public assistance programs

to disqualify any immigrant

who is disqualified from

federal programs.

Grandfather clause; that is,

current recipients would still

receive benefits as long as

they remained continuously

eligible.

Scope and

Methodology

To determine the number and characteristics of immigrants receiving SSI

and AFDC benefits, we analyzed data from SSI and AFDC administrative files,

as well as published data from INS and the Bureau of the Census. To

identify trends in immigrant and citizen use of SSI and AFDC, we reviewed

published administrative data from 1983 through 1993. We used published

data from INS’s 1992 and 1993 Statistical Yearbooks and the March 1994

Supplement of the Census Bureau’s Current Population Survey (CPS) to

provide background on overall immigration. The March 1994 CPS reports

recipiency data for 1993.

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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. We also analyzed 1993 AFDC

administrative data and SSI administrative data for December 1993. In

addition, we reviewed a published study by the Social Security

Administration (SSA)5

 that included information about immigrants’ use of

SSI’s aged, blind, and disabled benefits. INS defines immigrants as lawful

permanent residents. For the purposes of this report, we also included as

immigrants other categories of noncitizens who are eligible for SSI or AFDC:

refugees, asylees, aliens granted stay of deportation by INS, and other

PRUCOL individuals. We analyzed immigrant recipients’ immigration status,

length of time in the United States, and age—key characteristics in

determining eligibility under the welfare reform proposals.

To determine the impact of restricting or eliminating benefits for

immigrants, we reviewed four key welfare reform proposals. We used H.R.

4 and the administration’s proposal as examples of the range of options

available. To assess the impact of the proposals on immigrants and their

families, we interviewed officials from the SSI and AFDC programs and from

INS, researchers from public policy groups, and state and local government

officials with information about immigrants’ utilization of assistance

programs.

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. Based on CPS data, immigrants receiving SSI or AFDC

represented about 6 percent of all immigrants in 1993; in contrast, about

3.4 percent of citizens received such assistance.6

 However, the total

number of immigrants receiving SSI or AFDC is much lower than the number

of citizens because legal immigrants represent only about 6 percent of the

U.S. population. Based on 1993 administrative data, an estimated

18.6 million citizens received SSI or AFDC, compared with an estimated

1.4 million legal immigrants.

Much of the difference in recipiency rates between immigrants and

citizens can be explained by differences in their demographic

characteristics and household composition. Immigrants are much more

5

Scott, Charles, and Elsa Ponce, Aliens Who Receive SSI Payments, The Social Security

Administration, Office of Supplemental Security Income (March 1994). Included with disabled

immigrant recipients are blind recipients, who represent 1.4 percent of all SSI recipients.

6

We note that the CPS is based on a sample of all those over 15 years old in the interviewed household.

Children under 15 are not included and, thus, our estimate does not completely represent the SSI and

AFDC populations.

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likely than citizens to be poor. In 1993, about 29 percent of immigrant

households reported incomes below the poverty line, compared with

14 percent of citizen households. 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. These are all characteristics that increase the likelihood of

welfare recipiency. Public policy has also played a role in immigrants’

receipt of public assistance. Refugees and asylees are categories of

immigrants who are much more likely to be on welfare than citizens or

other immigrants. By virtue of their refugee or asylee status alone, they

qualify immediately for assistance programs that may be restricted to

other immigrants.

Almost 83 percent of all immigrants receiving SSI or AFDC in 1993 resided in

four states: California, New York, Florida, and Texas. This is not surprising

given that over 68 percent of all immigrants resided in these states. Over

one-half of the immigrants receiving these benefits lived in California. (See

table 2.)

Table 2: Percent of All Immigrants and

Immigrant Recipients, by Selected

States (1993) State

Percent of all

immigrants

Percent of all

immigrant recipients

California 38.2 52.4

New York 12.6 18.2

Florida 8.9 8.2

Texas 8.6 4.1

Subtotal 68.3 82.9

All other states 31.7 17.1

Source: CPS, March 1994.

Immigrants Represent

a Growing Percentage

of SSI and AFDC

Caseloads

As a percentage of all SSI recipients, immigrants receiving SSI benefits have

increased dramatically. The percentage of SSI recipients who were

immigrants nearly tripled between 1983 and 1993, rising from 3.9 to 11.5

percent. This rise occurred because the number of immigrants receiving

SSI grew at a much faster rate than the number of citizen recipients. The

number of immigrants receiving SSI increased from 151,207 to 683,178

while the number of citizen recipients increased from approximately

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B-257790 

3,750,300 to 5,301,200. In total, immigrants received an estimated

$3.3 billion in SSI benefits in 1993.7

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).

Consequently, aged immigrant recipients grew from 7.0 to 28.2 percent of

all aged recipients. Over the same time period, the number of immigrants

receiving disabled benefits increased six-fold (44,600 to 266,730), while the

number of citizens receiving disabled benefits increased by 81 percent

(approximately 2,341,500 to 4,242,800). As a result, the percentage of

disabled immigrants more than tripled, rising from 1.9 to 5.9 percent of all

disabled recipients. (See fig. 1.)

Figure 1: Immigrants’ Receipt of SSI

Benefits Has Grown (1983-93)

1983 1985 1987 1989 1991 1993

20,000

50,000

100,000

200,000

500,000

1,000,000

2,000,000

5,000,000

10,000,000

Year

Number of 

Recipients

Aged 

Immigrants

Aged 

Citizens

Disabled 

Immigrants

Disabled 

Citizens

Note: A logarithmic scale was used to illustrate relative rather than absolute changes in numbers

of recipients.

Source: SSA, 1993.

7

Estimated by multiplying the total number of immigrants receiving SSI by the average SSI monthly

payment to immigrants, times 12 months ((683,178 x $407.33) x 12)). Data were not available to

estimate 1983 benefits.

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Immigrants as a percentage of all AFDC recipients grew at a lower rate than

immigrants receiving SSI benefits. Adult immigrants receiving AFDC

increased from 5.5 to 10.8 percent between 1983 and 1993.8 In 1993, almost

722,000 immigrants, including adults and children, received an estimated

$1.2 billion in AFDC benefits.9

Characteristics of

Immigrant Recipients

Vary by Program

The characteristics of immigrants receiving SSI and AFDC differ, but data

limitations prevent a complete analysis. Available data show that SSI

immigrant recipients are more likely than citizens to be 75 years old or

older—the age that H.R. 4 uses to determine eligibility. Most AFDC families

containing immigrant recipients also contain citizen recipients. Only the

immigrants in these families would lose benefits under some of the

proposals—the citizen members of these families would remain eligible.

Compared with SSI recipients, AFDC recipients are more likely to be

refugees. However, available data provide an incomplete picture of

immigrant recipients, and even less is known about their sponsors.

Immigrants Receiving SSI

More Likely to Be 75 Years

Old or Older

As noted earlier, immigrants account for an increasingly greater

percentage of the SSI aged program. Moreover, immigrant recipients are

more likely than citizen recipients to be 75 years old or older. In 1993,

26 percent of immigrants on SSI aged benefits were 75 years old or older; in

contrast, 15.3 percent of citizen SSI recipients were 75 years old or older.

Most immigrants receiving SSI are lawful permanent residents, and many

have been in the country for over 5 years. Among immigrants receiving SSI

benefits in 1993, over 76 percent were lawful permanent residents,

18 percent were refugees or asylees, and 6 percent were other PRUCOL

immigrants. (See fig. 2.) Of lawful permanent residents, over 56 percent

had been in the country for 5 years or longer. About 10 percent of lawful

permanent residents were 75 years old or older and had been in the

country for 5 years or longer. Over 14 percent of refugees had been in the

country for 6 years or longer.

8

Published data on immigrant children receiving AFDC benefits are not available for any time before

1991.

9

Estimated by multiplying total number of immigrants receiving AFDC by the average AFDC monthly

payment per recipient, times 12 months (721,826 x $133.00) x 12)). Data were not available on 1983

recipients.

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B-257790 

Figure 2: Status of Immigrants

Receiving SSI

76% • Lawful Permanent Resident

•18%

Refugee/Asylee

•

6%

Other PRUCOL

Source: SSA, 1993.

Questions have been raised about the growing numbers of elderly

immigrants receiving SSI and the extent to which these immigrants entered

the United States with a financial sponsor. While we cannot determine the

extent to which immigrants receiving SSI are sponsored, SSA’s data suggest

that some immigrants apply for SSI benefits shortly after a deeming period

would have expired. Analyses by SSA researchers indicate that about

25 percent of lawful permanent residents who applied for SSI benefits since

1980 applied soon after 3 years of U.S. residency; that is, soon after the

sponsor’s promise of support would have expired.

Most AFDC Families With

Immigrants Also Contain

Citizen Recipients

Discussing the immigration status of AFDC recipients is complicated

because AFDC is a family-based benefit, and each family member could

have a different immigration status. Most AFDC households containing at

least one immigrant also contain a citizen. Of AFDC households with at

Page 10 GAO/HEHS-95-58 Legal Immigrants’ Benefits
B-257790 

least one immigrant recipient, only about 19 percent contained no citizen

(that is, all members of the household were immigrants). For example,

over 64 percent were headed by an immigrant adult with at least one

citizen child. In about 9 percent of the households containing immigrants,

at least one adult is a citizen and at least one child is a citizen. (See fig. 3.)

Figure 3: Composition of AFDC

Households Containing at Least One

Immigrant

64.28% • Contain Citizen Children

18.87%•

Contain No Citizen

•

8.63%

Contain Citizen Parent and Citizen

Children

1.29%

Contain Citizen Parent

•

6.93%

Othersa

aOthers may include pregnant women receiving AFDC benefits. Some states provide benefits to

pregnant females in their third trimester if they have no other children.

Source: Department of Health and Human Services, 1993.

Most immigrants receiving AFDC were either lawful permanent residents or

refugees or asylees. Data on all immigrant recipients showed that

65.3 percent—over 471,000—were lawful permanent residents and almost

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32.5 percent—over 234,000—were refugees or asylees. The remaining

immigrant recipients fall into other PRUCOL categories. (See fig. 4.)

Figure 4: Status of Immigrants

Receiving AFDC

61.0% • Lawful Permanent Resident

•32.5%

Refugees/Asylees

•

6.5%

Other PRUCOL

Source: Department of Health and Human Services, 1993.

Limited Data Hinder

Analysis of Immigrants and

Their Sponsors

No one source provides all the data needed to fully describe the

characteristics of immigrants receiving benefits or of their sponsors.

Administrative data from the SSI and AFDC programs may not have a

recipient’s current immigration status if an immigrant’s status changed and

the immigrant did not notify the agency. For example, lawful permanent

residents can become citizens after 5 years of residing in the United States

and meeting other INS criteria, and refugees and asylees can become lawful

permanent residents after a 1-year residency in the United States. Further,

AFDC administrative data do not contain information on how long an

immigrant recipient has resided in the United States.

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Additionally, computerized data on sponsors, their incomes, the amount of

financial support they provide, and the number of immigrants they are

sponsoring are not available from administrative sources or the INS. SSI’s

new automated application system collects information on sponsors but it

cannot currently aggregate the data for national analyses. The AFDC

program does not have any computerized data on sponsors of immigrant

recipients. INS collects this information when an immigrant first enters the

country but the data are not computerized. Given these data limitations,

we were unable to assess the extent to which immigrants are relying on

sponsors for financial assistance or determine sponsors’ ability to support

sponsored immigrants.

The Impacts of

Welfare Reform

Proposals Vary

The estimated number of immigrants affected by welfare reform proposals

varies. H.R. 4, which eliminates eligibility for certain categories of

immigrants, would eliminate benefits to the largest number of immigrant

recipients. The impact of the administration’s proposal, which would

increase the sponsor’s responsibility for supporting immigrants, is difficult

to determine. Last year, CBO estimated cost savings for these two

proposals.10 If these proposals were enacted, immigrants might change

their behavior by, for example, applying for state-funded public assistance,

naturalizing more quickly, or changing their immigration patterns.

Potential Federal Savings

of $10 Billion Over 4 Years

If SSI and AFDC Eligibility

Are Eliminated

Under H.R. 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. An estimated 522,000 immigrants receiving SSI

and an estimated 492,000 immigrants receiving AFDC—mostly lawful

permanent residents—are in categories that lose eligibility under this

proposal.11 In addition, some of the approximately 230,000 refugee

recipients may no longer be eligible if they had resided in the United States

for 6 years or longer.

10CBO estimated the cost savings for the Responsibility Empowerment Support Program Providing

Employment, Child Care, and Training Act (H.R. 3500), which was reintroduced during the 104th

Congress as H.R. 4.

11These estimates make no adjustment for limitations of administrative data that may overstate the

number of legal immigrants receiving benefits. As noted above, administrative data may not have a

recipient’s current immigration status if an immigrant’s status changed and the agency was not

notified. INS data that track immigrants over time suggest that at least 20 percent eventually become

citizens.

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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. Adjusting administrative data to account for naturalizations, CBO

estimated that 390,000 immigrants receiving SSI and 400,000 immigrants

receiving AFDC would lose eligibility under this proposal. Greater federal

savings are expected from the SSI program because SSI (1) provides a

higher average monthly benefit per person—$407 for SSI immigrants,

compared with $133 for AFDC; and (2) SSI benefits are solely a federal

expenditure, while AFDC costs are shared between the federal government

and the states. CBO estimated federal savings of $21.7 billion from all the

public assistance programs affected by this proposal including the SSI,

AFDC, Food Stamp, and Medicaid programs.12

Sponsorship Proposal

Difficult to Assess

Determining the impact of extending the amount of time a sponsor’s

income is deemed available for the immigrant is difficult because of a lack

of computerized data on sponsors, their income, and the number of

immigrants they are sponsoring. 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. CBO estimated that

more than 80 percent of these savings would come from the SSI program.

An additional $400 million over 4 years would be saved by tightening SSI,

Medicaid, and AFDC eligibility standards for immigrants to conform with

stricter Food Stamp program criteria.

Restrictions May Influence

Immigrants’ Behavior

While determining exactly how immigrant recipients will be affected by

the various welfare reform proposals is difficult, these changes may have

some effect on immigrants’ behavior. No studies have quantified these

effects; however, experts have suggested a number of possible outcomes.

For example, some immigrants who lose eligibility may find themselves

financially worse off. Other immigrants may find ways to increase their

income by increasing their work effort or relying more heavily on their

sponsors (if they have one) for financial support. Also, immigrants may

supplement their incomes by applying for state-funded public assistance

or seek changes in their naturalization status that would result in the

reinstatement of their benefits.

12The Food Stamp Program was designed to increase the food purchasing power of eligible low-income

households to a point where they could buy a nutritionally adequate low-cost diet. Medicaid is a

federal-state matching entitlement program providing medical assistance for low-income persons who

are aged, blind, disabled, members of families with dependent children, and certain other pregnant

women and children. In general, AFDC and SSI recipients are eligible for food stamps and Medicaid.

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Immigrants who lose eligibility for federal welfare programs may turn to

state-funded public assistance programs, thus shifting costs to the states.

State general assistance programs would be unable to restrict benefits to

legal immigrants losing federal eligibility. According to the 1971 Supreme

Court ruling in Graham v. Richardson, states cannot categorically restrict

legal immigrants from receiving state benefits.13 As of 1992, state- or

county-funded public assistance programs were operating in 42 states.

California and New York, two states with high concentrations of

immigrants on public assistance and which operate state general

assistance programs, could be greatly affected. As a result, the possible

savings that states would accrue from their reduced share of AFDC benefits

to immigrants could be offset by increased costs for state-funded general

assistance.

Immigrants may also change their naturalization and immigration patterns.

Eliminating or restricting benefit eligibility may prompt more immigrants

to become citizens to retain their eligibility,14 according to an Urban

Institute study.15 CBO’s $21.7 billion cost-savings estimate takes into

account higher naturalization rates. However, the impact of the proposal

on naturalization rates is difficult to predict. Even higher naturalization

rates could lower actual program savings. Restricting legal immigrants’

eligibility for benefits may also have longer-term effects on the number

and composition of immigrants entering this country. Eliminating benefits

for most legal immigrants could prompt some prospective immigrants to

reconsider their decision to seek residence in this country. In addition,

potential sponsors of immigrants may reconsider whether they would

assist others in entering this country if doing so may result in additional

financial responsibility on the part of the sponsor, according to an INS

official.

As agreed with your office, we did not obtain written agency comments

but we did discuss the report with program officials at HHS, SSA, and INS.

We also discussed the contents of the report with the Congressional

13Graham v. Richardson, 403 U.S.C. 365 (1971), prohibits states from denying benefits to persons based

on their status as a legal alien.

14Some immigrants who meet eligibility requirements may not be eligible for naturalization because of

requirements that the immigrant be able to read, write, and speak words in ordinary usage in the

English language. Exceptions are limited to immigrants who are physically disabled from complying

due to a permanent disability and to older immigrants who have lived in the United States at least 15

years after being admitted as a permanent resident. (8 C.F.R. § 312.1.)

15Fix, Michael, and Jeffrey Passel, Immigration and Immigrants: Setting the Record Straight, The Urban

Institute (Washington, D.C.: March 1994).

Page 15 GAO/HEHS-95-58 Legal Immigrants’ Benefits
B-257790 

Research Service, CBO, and other relevant research organizations. The

officials generally agreed with the contents of this report but made some

technical comments that we incorporated as appropriate. We are sending

copies of this report to appropriate congressional committees, the

Secretary of Health and Human Services, the Commissioner of the Social

Security Administration, the Commissioner of INS, and other interested

parties.

If your or your staff have any questions concerning this report, please call

me on (202) 512-7215. Other GAO contacts and staff acknowledgments are

listed in appendix I.

Sincerely yours,

Jane L. Ross

Director, Income Security Issues

Page 16 GAO/HEHS-95-58 Legal Immigrants’ Benefits
Page 17 GAO/HEHS-95-58 Legal Immigrants’ Benefits
Contents

Letter 1

Appendix I 

GAO Contacts and

Acknowledgments

20

Glossary 21

Tables Table 1: Comparison of Two Welfare Reform Proposals 5

Table 2: Percent of All Immigrants and Immigrant Recipients, by

Selected States

7

Figures Figure 1: Immigrants’ Receipt of SSI Benefits Has Grown 8

Figure 2: Status of Immigrants Receiving SSI 10

Figure 3: Composition of AFDC Households Containing at Least

One Immigrant

11

Figure 4: Status of Immigrants Receiving AFDC 12

Abbreviations

AFDC Aid to Families With Dependent Children

CBO Congressional Budget Office

CPS Current Population Survey

CRS Congressional Research Service

HHS Department of Health and Human Services

INS Immigration and Naturalization Service

PRUCOL permanently residing under color of law

SSA Social Security Administration

SSI Supplemental Security Income

Page 18 GAO/HEHS-95-58 Legal Immigrants’ Benefits
Page 19 GAO/HEHS-95-58 Legal Immigrants’ Benefits
Appendix I 

GAO Contacts and Acknowledgments

Contacts Cynthia M. Fagnoni, Assistant Director, (202) 512-7202

Karen A. Brown, Evaluator-in-Charge, (202) 512-7240

Acknowledgments In addition to those named above, the following individuals made

important contributions to this report: John Vocino, Senior Evaluator;

Alicia Puente Cackley, Senior Economist; C. Robert DeRoy, Assistant

Director (Computer Science); Paula A. Bonin, Senior Computer Specialist;

Vanessa R. Taylor, Senior Evaluator (Computer Science); Steven R.

Machlin, Senior Statistician.

Page 20 GAO/HEHS-95-58 Legal Immigrants’ Benefits
Glossary

Affidavit of Support Signed by a sponsor for an immigrant as an assurance that the immigrant

will not become a public charge. Aliens found likely to become a public

charge may not be admitted into the United States under the Immigration

and Nationality Act.

Aid to Families With

Dependent Children

The AFDC program provides cash welfare payments for (1) needy children

who have been deprived of parental support or care because their father

or mother is absent from the home continuously, incapacitated, deceased,

or unemployed; and (2) certain others in the household of a child

recipient. Benefits may also be provided to needy women in the third

trimester of their pregnancy. States define need, set their own benefit

levels, establish income and resource limits, and supervise or administer

the program. Federal funds pay from 50 to about 80 percent of the AFDC

benefit costs in a state and 50 percent of administration costs.

Asylee INS defines an asylee as an alien in the United States or at a port of entry,

who is unable or unwilling to return to his or her country of nationality

because of persecution or a well-founded fear of persecution. Persecution

or the fear thereof may be based on the alien’s race, religion, nationality,

membership in a particular social group, or political opinion. Asylees

apply for status after entering the United States, and are eligible to adjust

to lawful permanent resident status after 1 year of continuous presence in

the United States.

Deeming If a sponsored immigrant applies for public assistance, the income and

resources of the sponsor will be considered or deemed to also be available

to the sponsored immigrant, regardless of whether they are in fact

available to the immigrant.

General Assistance State and locally funded programs designed to provide basic benefits to

low-income people who are not eligible for federally funded cash

assistance. States, counties, or other local governmental units determine

general assistance benefit levels, eligibility criteria, and length of

eligibility.

Lawful Permanent

Resident

INS defines lawful permanent residents as persons lawfully accorded the

privilege of residing permanently in the United States. They may be issued

Page 21 GAO/HEHS-95-58 Legal Immigrants’ Benefits
Glossary

immigrant visas by the Department of State overseas or adjusted to

permanent resident status by the INS in the United States. Generally, a

lawful permanent resident can apply for naturalization to become a U.S.

citizen after living in the United States continuously for 5 years.

Naturalization INS defines naturalization as the conferring, by any means, of citizenship

upon a person after birth. Immigrants must meet certain requirements to

be eligible to become naturalized citizens. Generally, they must be at least

18 years old, have been lawfully admitted for permanent residence, and

have resided in the United States continuously for at least 5 years. They

must also be able to speak, read, and write the English language;

demonstrate a knowledge of U.S. government and history; and have good

moral character.

PRUCOL This term refers to immigrants who are considered “permanently residing

under color of law.” PRUCOL is not an immigration status provided by INS;

rather, it is a term used to indicate many alien statuses and is used for the

purpose of determining eligibility for AFDC, SSI, and Medicaid.

Refugee INS defines a refugee as any person who is outside his or her country of

nationality and unable or unwilling to return to that country because of

persecution or a well-founded fear of persecution. Persecution or the fear

thereof may be based on the alien’s race, religion, nationality, membership

in a particular social group, or political opinion. Refugees apply for status

outside the United States; they are eligible to adjust to lawful permanent

resident status after 1 year of continuous presence in the United States.

Supplemental Security

Income

The SSI program is a means-tested, federally administered income

assistance program authorized by title XVI of the Social Security Act.

Begun in 1974, SSI provides monthly cash payments in accordance with

uniform, nationwide eligibility requirements to needy aged, blind, and

disabled persons. The aged are defined as persons 65 years old and older.

The blind are individuals with 20/200 vision or less with the use of a

correcting lens in the person’s better eye or those with tunnel vision of 20

degrees or less. Disabled individuals are those unable to engage in any

substantial gainful activity by reason of a medically determined physical or

mental impairment expected to result in death or that has lasted or can be

Page 22 GAO/HEHS-95-58 Legal Immigrants’ Benefits
Glossary

expected to last for a continuous period of at least 12 months. Some states

supplement federal SSI payments with state funds.

Sponsor A sponsor is a person who has signed an affidavit of support on behalf of

an alien seeking permanent residence in the United States.

(105915) Page 23 GAO/HEHS-95-58 Legal Immigrants’ Benefits
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