Welfare Reform: Many States Continue Some Federal or State Benefits for
Immigrants (Letter Report, 07/31/98, GAO/HEHS-98-132).

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.

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.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  HEHS-98-132
     TITLE:  Welfare Reform: Many States Continue Some Federal or State 
             Benefits for Immigrants
      DATE:  07/31/98
   SUBJECT:  Food relief programs
             Welfare benefits
             State programs
             Immigrants
             State-administered programs
             Public assistance programs
             Eligibility determinations
IDENTIFIER:  HHS Temporary Assistance for Needy Families Program
             Medicaid Program
             Food Stamp Program
             Supplemental Security Income Program
             USDA Emergency Food Assistance Program
             SSI
             
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Cover
================================================================ COVER


Report to the Ranking Minority Member, Subcommittee on Children and
Families, Committee on Labor and Human Resources, U.S.  Senate

July 1998

WELFARE REFORM - MANY STATES
CONTINUE SOME FEDERAL OR STATE
BENEFITS FOR IMMIGRANTS

GAO/HEHS-98-132

Welfare Reform

(116002)


Abbreviations
=============================================================== ABBREV

  EBT - electronic benefic transfer
  HHS - Department of Health and Human Services
  INS - Immigration and Naturalization Service
  PRUCOL - Permanently Residing Under the Color of Law
  SAVE - Systematic Alien Verification for Entitlement
  SSA - Social Security Administration
  SSI - Supplemental Security Income
  TANF - Temporary Assistance for Needy Families
  TEFAP - The Emergency Food Assistance Program
  USDA - U.S.  Department of Agriculture

Letter
=============================================================== LETTER


B-278096

July 31, 1998

The Honorable Christopher J.  Dodd
Ranking Minority Member
Subcommittee on Children and Families
Committee on Labor and Human Resources
United States Senate

Dear Senator Dodd: 

Title IV of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (P.L.  104-193) restricts legal
immigrants' access to public welfare benefits.\1 This represents a
significant change in policy toward many immigrants who had generally
been eligible for public benefits on the same basis as citizens.  The
act is designed to ensure that available public benefits do not
provide an incentive for immigration and that immigrants entering
this country be self-reliant.  Title IV, as amended,\2 made
immigrants ineligible for certain federal welfare benefits and gave
states options to provide or restrict immigrants' access to other
federal, state, and local benefits.  In addition, the law specifies
different eligibility for immigrants depending upon whether they
entered the country before enactment of the legislation on August 22,
1996.  Immigrants to this country before the act are referred to as
"pre-reform immigrants" in this report; those entering after the act
are referred to as "new immigrants."

The act, which we call the welfare reform law, restricts immigrants'
eligibility for key federal programs, including Temporary Assistance
for Needy Families (TANF), Medicaid, Supplemental Security Income
(SSI), and the Food Stamp program.  Generally, the law allows no new
immigrants to receive TANF and Medicaid benefits\3 during their first
5 years in the United States.  In addition, the law allows the states
the option of denying TANF and Medicaid eligibility to most
pre-reform immigrants as well as to new immigrants after 5 years of
U.S.  residency.  Although the law originally barred immigrants from
receiving SSI benefits, the Balanced Budget Act of 1997 reinstated
these benefits for pre-reform immigrants already on the rolls and for
those who are now or become blind or disabled.  New immigrants,
however, with some exceptions cannot receive SSI benefits. 

In addition, a recent legislative change has restored eligibility for
some immigrants who lost eligibility for federal food stamps.  The
Agricultural Research, Extension, and Education Reform Act of 1998
(P.L.  105-185)--
signed into law on June 23, 1998--restores food stamp eligibility
effective November 1, 1998, to pre-reform immigrants who are
receiving benefits or assistance for blindness or disability, younger
than 18, or aged 65 and older as of August 22, 1996, and others.  The
welfare reform law, however, still bars most pre-reform and new
immigrants from receiving federally funded food stamp benefits.  In
addition to the program restrictions, the law requires some sponsors
of new immigrants to sign legally binding contracts--affidavits of
support--agreeing to financially help the new immigrants. 

Concerned with the restrictions imposed by the welfare reform law and
their impact on immigrant children and families, you asked us to
address the following: 

  -- the options states chose regarding TANF and Medicaid benefits
     for immigrants and state-funded assistance available to new
     immigrants during the 5-year bar;

  -- for restricted federal programs, 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

  -- the major implementation issues and challenges state agencies
     face in administering the provisions changing welfare assistance
     to immigrants. 

Although immigration policy affects the states in many ways, our
review focused specifically on states' responses to the welfare
reform changes for immigrants.  Generally, this report describes
states' responses before the legislative changes of June 1998 that
restored eligibility for federal food stamps to some immigrants as of
November 1, 1998.  To obtain information on the benefits that the 50
states and the District of Columbia provide to pre-reform and new
immigrants, we reviewed national studies and summaries of state
legislative changes that focused on immigrants and welfare reform
restrictions.\4

We conducted fieldwork in 3 of the 10\5 states where most immigrants
reside--California, Washington, and New Jersey--and one locality
within each of those states--San Francisco, Seattle, and Essex
County--to collect more detailed information on states' responses. 
In addition, to determine implementation issues concerning the
welfare reform changes to benefits for immigrants, we spoke with
federal officials of each program, state and local officials during
our site visits, and immigrant advocacy groups.  Our work was
conducted between June 1997 and May 1998 in accordance with generally
accepted government auditing standards. 


--------------------
\1 The law affects the rights of immigrants who are lawfully admitted
for permanent residence as well as other noncitizens legally in the
United States.  These other noncitizens, such as refugees and
asylees, together with those lawfully admitted for permanent
residence, are defined in the law as "qualified aliens." In this
report, we generally discuss the rights and responsibilities of those
lawfully admitted for permanent residence and refer to them as
immigrants; however, when relevant, we mention how the law has
affected other noncitizens. 

\2 Two laws contained significant amendments to title IV and other
related statutes:  the Illegal Immigration Reform and Immigrant
Responsibility Act of 1996 (P.L.  104-208, Division C) and Balanced
Budget Act of 1997 (P.L.  105-33).  The effects of these amendments
are discussed in our report. 

\3 See also Medicaid:  Early Implications of Welfare Reform for
Beneficiaries and States (GAO/HEHS-98-62, Feb.  24, 1998). 

\4 For the purposes of this report, we count the District of Columbia
as a state. 

\5 According to the Immigration and Naturalization Service (INS), as
of Apr.  1996, over 80 percent of the nation's immigrants lived in 10
states.  These states, listed in order from highest to lowest in
immigrant population, are California, New York, Texas, Florida, New
Jersey, Illinois, Massachusetts, Virginia, Maryland, and Washington. 


   RESULTS IN BRIEF
------------------------------------------------------------ Letter :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.  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.  About a third of the states use state funds to provide
similar benefits to some new immigrants during the 5-year bar.  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. 

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. 
After the implementation of the food stamp restrictions, an estimated
940,000 immigrants receiving food stamps in 1997 lost eligibility for
receiving them.  Almost one-fifth of this group consisted of
immigrant children.  At the time of our 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.  Fewer states, however, offer state-funded food stamps to
new immigrants.  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.  States' responses to the restoring of these
benefits, such as changing eligibility for state-funded programs, are
unknown at this time. 

With the implementation of the welfare reform restrictions for
immigrants, states and local governments face added responsibilities. 
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.  The states we visited anticipated major systems changes
and other additional work to implement the new verification
procedures.  Furthermore, states choosing to provide assistance to
immigrants no longer eligible for federal benefits are uncertain
about future funding for these programs.  These states also face
additional challenges managing funding streams and determining
eligibility for federal and state programs. 


   BACKGROUND
------------------------------------------------------------ Letter :2

From the passage of the Social Security Act in 1935 until the welfare
reform law of 1996, the immigration status of those lawfully admitted
for permanent U.S.  residence did not preclude these individuals from
eligibility for welfare benefits.  Welfare reform changed this by
substantially restricting pre-reform and new immigrants' access to
federal means-tested benefits.  Table 1 details the program
eligibility changes for immigrants under the major federal welfare
programs.  As a result of these changes, pre-reform immigrants remain
eligible for some benefits.  New immigrants are ineligible for
federal benefits during their first 5 years of U.S.  residency, until
they become naturalized citizens,\6 or unless they have an
immigration status excepted from the restrictions. 



                                     Table 1
                     
                       Overview of Federal Welfare Program
                            Eligibility for Immigrants

                                               Immigrants\a
                           -----------------------------------------------------
                           Pre-reform (entered
                           United States before Aug.  New (entered United States
Federal program            22, 1996)                  on or after Aug. 22, 1996)
-------------------------  -------------------------  --------------------------
TANF: Assistance for       State's option to          No benefits available for
needy families with        continue benefits.\b       first 5 years, then at
dependent children who                                state's option.
meet state eligibility
criteria

Medicaid:\c Medical        Benefits continued for     No benefits available for
assistance to needy        those receiving SSI and    first 5 years, then at
individuals who meet       state's option to          state's option.
federal and state          continue benefits for
eligibility criteria       others.\b

SSI: Cash assistance to    Benefits continued for     No benefits available
needy blind, disabled, or  those receiving SSI\b and  until citizenship.
aged individuals who meet  those who are or become
federal eligibility        blind or disabled can
criteria                   apply in the future.

Food stamps: Food          No benefits available      No benefits available
assistance to needy        until citizenship.         until citizenship.
individuals who meet
federal eligibility
criteria
--------------------------------------------------------------------------------
Note:  This reflects the welfare reform provisions as of May 1998. 
In June 1998, P.L.  105-185 was enacted to restore food stamp
eligibility to certain pre-reform immigrants. 

\a Exceptions allow for benefits to be provided to aliens entering
the United States as refugees or asylees, Amerasian immigrants, Cuban
or Haitian entrants, and those whose deportation is withheld.  These
individuals are eligible to apply for TANF and Food Stamp benefits
during the first 5 years and for Medicaid and SSI during their first
7 years of U.S.  residency.  In addition, benefits may be provided to
immigrants who are honorably discharged veterans, active-duty
personnel, or their spouses and dependent children, and pre-reform or
new immigrants (after 5 years of U.S.  residency) who can be credited
with 40 work quarters through their own or their parents' or spouse's
work. 

\b Certain noncitizens who remain in the country legally but do not
meet the definition of "qualified alien," such as those Permanently
Residing Under the Color of Law (PRUCOL), may no longer meet the
eligibility criteria for TANF, Medicaid, and SSI.  PRUCOL status
denotes those aliens who have legally resided in the country for an
indefinite period of time but are not lawfully admitted for permanent
residence.  Such status was used in determining an alien's
eligibility for certain welfare benefits. 

\c Immigrants who are no longer eligible for Medicaid retain
eligibility for Medicaid's emergency services. 

The welfare reform law allows states to decide whether pre-reform
immigrants retain eligibility for federal TANF and Medicaid and
whether new immigrants can apply for these programs after a mandatory
5-year bar.  As originally passed, the welfare reform law generally
eliminated immigrants' eligibility for SSI and food stamps.  The
Balanced Budget Act of 1997 reinstated SSI eligibility for pre-reform
immigrants already receiving benefits and allowed pre-reform
immigrants who are or become blind or disabled to apply for benefits
in the future.  New immigrants, however, generally cannot receive SSI
and food stamp benefits unless they meet certain exceptions or become
citizens.  These exceptions appear in table 1, which shows that the
exception of allowing benefits to those who can be credited with 40
work quarters only applies to new immigrants with 5 years of U.S. 
residency.  The welfare reform law also specifies federal programs
from which an immigrant cannot be barred.\7

The recent legislative change has restored food stamp eligibility,
effective November 1, 1998, to pre-reform immigrants receiving
benefits or assistance for blindness or disability, younger than 18,
or aged 65 and older as of August 22, 1996.  The law also restores
eligibility to certain Hmong or Highland Laotian tribe entrants
lawfully residing in the United States, regardless of their date of
entry, and extends the eligibility period for refugees and asylees
from 5 to 7 years after entering the country. 

In addition to restricting immigrants' eligibility for welfare
benefits, the 1996 welfare reform law revised requirements for those
sponsoring immigrants' entry into the United States.  Under welfare
reform, an immigrant sponsored by a relative\8 must have the sponsor
sign an affidavit of support promising to provide financial
assistance if needed.\9 In addition, to better ensure that sponsors
will be financially able to help the immigrants they have sponsored,
the new law requires that sponsors have incomes equal to at least 125
percent\10

of the federal poverty level for the number of people that they will
support, including themselves, their dependents, and the sponsored
immigrant and accompanying family members.\11 Moreover, to address
concerns about the enforceability of affidavits of support executed
before welfare reform, the new law specifies that each affidavit must
be executed as a legally binding contract enforceable against the
sponsor by the immigrant, the U.S.  government, or any state or
locality that provides any means-tested public benefit.  The
affidavit is enforceable until the sponsored immigrant naturalizes,
is credited with 40 work quarters, permanently leaves the country, or
dies. 

In addition to requiring legally enforceable affidavits, the law
extends a sponsor's responsibility to support immigrants by
lengthening the time a sponsor's income is attributable to a new
immigrant if the immigrant applies for welfare benefits.  Some
federal programs previously mandated this attribution, called
deeming; however, the sponsor's income was generally included for
only the first 3 or 5 years of an immigrant's residency.  The law now
requires states to deem a sponsor's income in federal means-tested
programs until the immigrant becomes a citizen or can be credited
with 40 work quarters.  The welfare reform law also gives states the
option of adding deeming requirements to state and local means-tested
programs. 

The new support and deeming requirements are intended to ensure that
immigrants rely on their sponsors rather than public benefits for
aid, that the sponsors have the financial capacity to provide aid,
and that sponsors are held accountable for helping immigrants they
have agreed to support.  This way, unless a sponsor suffers a
financial setback, an immigrant should be less likely to need or
receive public benefits.\12

In addition, the welfare reform law requires states to implement new
procedures to verify an alien's status when determining eligibility
for federal public benefits.  The states have 2 years after the
Immigration and Naturalization Service (INS) issues final regulations
to ensure that their verification procedures comply with the
regulations.  The procedures include verifying individuals' status as
citizens or aliens, which information the states use in determining
individuals' eligibility for federal public welfare benefits,
including grants, contracts, or loans provided by a federal agency or
appropriated U.S.  funds.  INS responds to inquiries by federal,
state, and local government agencies seeking to verify or determine
citizenship or immigration status.\13


--------------------
\6 Generally, to become naturalized citizens, immigrants must meet
residency requirements, which include at least 5 years of U.S. 
residency after receiving permanent residence status and being of
good moral character.  During the naturalization process, immigrants
must also demonstrate knowledge of the English language and U.S. 
history and government. 

\7 All immigrants remain eligible for certain federal benefit
programs, including emergency Medicaid services; short-term emergency
disaster relief; immunizations against and testing and treatment for
communicable diseases; programs determined by the Attorney General to
be necessary for protecting life or safety (such as soup kitchens,
child protection services, and short-term shelters); and school lunch
and child nutrition programs. 

\8 Employment-based immigrants coming to work for relatives or for
companies where relatives have significant financial interest must
also have affidavits of support. 

\9 Before welfare reform, affidavits of support were not always
required to demonstrate self-sufficiency, and, even when executed,
some courts held that the affidavits were not enforceable. 

\10 Sponsors on active duty in the military need an income of at
least 100 percent of the poverty level if they are sponsoring their
spouse or child. 

\11 For 1998, the income requirement of a sponsor equals an annual
income of at least $16,450 for a family of four. 

\12 Regardless of whether a sponsor suffers a financial setback,
dies, or moves, new immigrants are generally ineligible for federal
means-tested benefits during their first 5 years of U.S.  residency. 

\13 INS' current Systematic Alien Verification for Entitlement (SAVE)
Program can electronically verify the status of those lawfully
admitted for permanent residence as well as aliens in other
categories.  Copies of documents can be sent to INS for further
verification for certain groups of aliens or when status cannot be
verified through the automated system.  Agencies that do not
participate in the SAVE system can also send copies of documents to
INS for manual verification. 


   STATES' APPROACHES TO PROVIDING
   TANF AND MEDICAID TO IMMIGRANTS
------------------------------------------------------------ Letter :3

Almost all states decided to continue providing TANF and Medicaid
benefits for pre-reform immigrants and to provide these benefits to
new immigrants after 5 years of U.S.  residency.  Fewer states offer
assistance comparable with TANF and Medicaid to new immigrants during
the mandatory 5-year federal bar.\14

Some of these state programs, however, limit benefits to certain
categories of immigrants or impose certain requirements such as
living in the state for 12 months before applying for benefits. 


--------------------
\14 According to information compiled by the National Immigration Law
Center, the following 16 states or localities within these states
provide state-funded cash assistance:  California, Colorado,
Connecticut, Georgia, Hawaii, Kansas, Maine, Maryland, Massachusetts,
Michigan, Minnesota, Nebraska, Oregon, Utah, Vermont, and Washington. 
The following 18 states or localities within these states provide
state-funded medical assistance:  California, Connecticut, Kansas,
Maine, Maryland, Massachusetts, Michigan, Minnesota, Nebraska, New
Jersey, New Mexico, New York, Pennsylvania, Rhode Island, Vermont,
Virginia, Washington, and Wisconsin.  In addition, according to a
TANF-Medicaid Eligibility Information Survey conducted by the
American Public Welfare Association in Jan.  1997, six other states
provide state-funded prenatal care to immigrants:  Alaska, Arizona,
Illinois, Oklahoma, Tennessee, and Texas. 


      MOST STATES PROVIDE OPTIONAL
      FEDERAL BENEFITS TO
      PRE-REFORM AND NEW
      IMMIGRANTS
---------------------------------------------------------- Letter :3.1

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.  Almost all states and the District
of Columbia are continuing TANF for both groups.\15 Forty-nine states
and the District of Columbia are continuing federal Medicaid benefits
for these immigrants.  Wyoming is the only state to discontinue
Medicaid for all immigrants.  Immigrants no longer eligible for the
full scope of Medicaid benefits, however, continue to be eligible for
emergency services under Medicaid. 


--------------------
\15 Mississippi and South Carolina are uncertain if they will provide
TANF benefits to new immigrants following the 5-year bar.  In
addition, Alabama initially chose not to provide TANF benefits to
pre-reform immigrants and to new immigrants following the 5-year bar;
however, it will provide these benefits to pre-reform immigrants
starting sometime in 1998. 


      LIMITED NUMBER OF STATES
      PROVIDE BENEFITS TO NEW
      IMMIGRANTS DURING 5-YEAR BAR
---------------------------------------------------------- Letter :3.2

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.\16 Six of the 10
states where most immigrants reside provide assistance to those no
longer eligible for TANF and Medicaid.  California, Maryland,
Massachusetts, and Washington provide both state-funded cash and
medical assistance, while New Jersey and Virginia provide medical
assistance.\17 Some of these state programs impose deeming
requirements similar to the federal program rules and state residency
requirements.  In addition, some states restrict medical assistance
to immigrant children, pregnant women, or to those in residential
care before a specific date.  Maryland, for example, provides medical
assistance to pregnant women and children, and Virginia provides
benefits to children. 

In the states we visited, we observed a range of these types of
benefits available to immigrants.  California, where more than 35
percent of the nation's immigrants live, provides both state-funded
cash and medical assistance to new immigrants during their 5-year bar
from federal benefits.  New Jersey provides state-funded medical
assistance to new immigrants, although it has proposed changes to
state legislation to limit the scope of medical assistance benefits
to emergency services only.  In Washington, new immigrants may obtain
state-funded cash or medical assistance after meeting a 12-month
residency requirement and the state-imposed federal deeming
requirements.  Officials of Washington state noted that it included
the residency requirement to address concerns about the state
attracting immigrants from other states and becoming a welfare magnet
state for immigrants.\18


--------------------
\16 These state-funded programs may also allow eligibility to
pre-reform noncitizens no longer eligible for TANF and Medicaid. 

\17 Florida and New York provide state-funded medical assistance to
elderly and disabled immigrants who lived in their states before June
30, 1997, and Aug.  4, 1997, respectively.  New York's eligibility
requirements also specify that recipients be in state-licensed
nursing homes or residential care facilities. 

\18 Some research suggests that the more generous welfare benefits
provided in some states may encourage low-income families to move to
those states.  See Rebecca Blank, "The Effect of Welfare and Wage
Levels on the Location Decisions of Female-Headed Households,"
Journal of Urban Economics, Vol.  24 (1988), pp.  186-211, and Paul
Peterson and Mark Rom, Welfare Magnets:  A New Case for a National
Standard, Brookings Institution (Washington, D.C.:  Sept.  1990). 
Other research, focused specifically on immigrants, which uses 1982
and 1992 data, found that immigrants chose locations to move to
mainly by the presence of earlier immigrants in the area rather than
by the welfare benefits available.  See Madeline Zavodny, "Welfare
and the Locational Choices of New Immigrants," Economic Review,
Second Quarter (1997), pp.  1-10. 


   SOME IMMIGRANTS NO LONGER
   ELIGIBLE FOR SSI BENEFITS MAY
   RECEIVE SOME ASSISTANCE
------------------------------------------------------------ Letter :4

Before welfare reform, SSI provided a monthly cash benefit to needy
individuals who were aged, blind, or disabled whether they were
immigrants or citizens.  Although welfare reform ultimately retained
SSI eligibility for most pre-reform immigrants, it barred new
immigrants from receiving SSI benefits until they become citizens or
are categorized as excepted from the restrictions.  Few states are
replacing SSI benefits with new state-funded programs; however, many
states have cash assistance programs available to those no longer
eligible for SSI. 


      MOST PRE-REFORM IMMIGRANTS
      RETAIN SSI BENEFITS
---------------------------------------------------------- Letter :4.1

The Social Security Administration (SSA) prepared to terminate
benefits for almost 580,000 immigrants before the welfare reform law
was amended to continue SSI benefits for pre-reform immigrants
already on the rolls and to provide benefits in the future for those
pre-reform immigrants who are or become blind or disabled.\19
Pre-reform immigrants not already receiving SSI will no longer
qualify for benefits solely on the basis of advanced age. 
Approximately 20,000 pre-reform noncitizens, however, do not meet the
law's definition of "qualified alien"\20 and will therefore lose
their SSI benefits in 1998 unless they adjust their immigration
status to an eligible class.  According to SSA, the noncitizens
scheduled to lose their benefits were categorized as Permanently
Residing Under the Color of Law (PRUCOL).\21


--------------------
\19 The Congressional Budget Office estimates that the number of
pre-reform immigrants benefiting from the provision that allows those
who are or become blind or disabled to apply for SSI will be about
65,000 in 1998, peak at 85,000 in 2000, and then decline gradually. 

\20 The law defines a "qualified alien" as a person lawfully admitted
for permanent residence, refugee or asylee, Cuban or Haitian entrant,
person whose deportation is being withheld, parolee admitted for at
least 1 year, or person granted conditional entry.  In addition, a
battered spouse, child, or parent of battered children is treated as
a qualified alien. 

\21 PRUCOL status denotes those aliens who have legally lived in the
country for an indefinite time period but are not lawfully admitted
for permanent residence.  Before welfare reform, such status was used
in determining an alien's eligibility for certain welfare benefits. 


      ASSISTANCE FOR IMMIGRANTS NO
      LONGER ELIGIBLE FOR SSI
---------------------------------------------------------- Letter :4.2

Although few states are providing state-funded benefits to
specifically replace SSI benefits, most states have general
assistance programs through which some immigrants who have lost SSI
and those who are no longer eligible may obtain aid.  General
assistance is one of the largest structured state or local programs
providing assistance to the needy on an ongoing basis.\22 According
to a 1996 Urban Institute report, 41 states or localities within
those states and the District of Columbia, including the 10 states
where most immigrants reside, provided such programs.\23 \, \24 Under
welfare reform, however, states have the option of limiting the
eligibility of immigrants for state-funded public benefits, including
general assistance. 

General assistance benefits are generally lower than federal cash
assistance and vary by state in the populations served.  In
California, where counties fund and administer these programs,
benefits range from $212 to $345 per month, which is considerably
lower than the average monthly SSI benefit of $532 for California's
immigrants.  In addition, the groups of individuals who may apply for
general assistance range from all financially needy people to needy
families with children and the disabled, elderly, unemployable, or a
combination of these groups.  In Washington, immigrants ineligible
for SSI who are 18 or older and incapable of gainful employment for
at least 90 days may receive assistance through the state's General
Assistance-Unemployable program; however, new immigrant children with
disabilities who might have been eligible for SSI under previous law
are ineligible for this program.  These benefits, which average $339
per month in Washington, are less than the state's average SSI
benefit of $512 per month. 

On the basis of our analysis of information compiled by the National
Immigration Law Center, few states have programs to specifically
replace SSI benefits for new immigrants.\25 Two states, Hawaii and
Nebraska, offer state-funded benefits to disabled, blind, and elderly
immigrants specifically to replace SSI benefits for which they are no
longer entitled.  Colorado offers cash assistance to elderly
immigrants no longer eligible for SSI. 


--------------------
\22 General assistance, as used in this report, refers to cash or
in-kind benefits to low-income people not eligible for federally
funded cash assistance.  These programs are financed and administered
entirely through the state, county, or locality (or a combination of
these) where they operate.  Program names, eligibility criteria, and
benefits vary by state, and in many cases program elements also vary
within states. 

\23 The following nine states do not have state or local general
assistance programs:  Alabama, Arkansas, Louisiana, Mississippi,
Oklahoma, South Carolina, Tennessee, West Virginia, and Wyoming. 

\24 State General Assistance Programs - 1996, Urban Institute
(Washington, D.C.:  Oct.  1996).  Information for this report was
gathered before the passage of the welfare reform law. 

\25 The National Immigration Law Center information on benefits for
immigrants was updated on Jan.  8, 1998.  The information on
SSI-replacement benefits had not been updated, however, to reflect
changes in state programs since the enactment of the Balanced Budget
Act of 1997, which retained SSI benefits for certain pre-reform
immigrants. 


   STATES' APPROACHES TO PROVIDING
   FOOD ASSISTANCE TO IMMIGRANTS
------------------------------------------------------------ Letter :5

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.  Fewer states
offer such benefits to new immigrants.  States' responses to the most
recent legislative change restoring eligibility to some of the
pre-reform immigrants are not yet known.  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.  Besides funding replacement food assistance programs, many
states have increased funding for emergency food providers such as
food banks.\26 The states and immigrant advocacy groups contacted for
our prior study,\27 however, expressed concern that the limited
emergency food assistance may be insufficient to meet the needs of
immigrants who lost their eligibility for food stamps. 


--------------------
\26 Food banks collect and distribute a variety of food products to
organizations such as food pantries and soup kitchens.  Food pantries
may provide temporary food assistance for those in crisis.  Soup
kitchens provide meals on site for those in need. 

\27 See Welfare Reform:  State and Local Responses to Restricting
Food Stamp Benefits (GAO/RCED-98-41, Dec.  18, 1997). 


      MOST PRE-REFORM IMMIGRANTS
      LOSE FOOD STAMP BENEFITS
---------------------------------------------------------- Letter :5.1

The year following welfare reform, an estimated 940,000 of the 1.4
million immigrants receiving food stamps lost their eligibility for
receiving benefits, according to the U.S.  Department of Agriculture
(USDA).  Those no longer eligible would have otherwise received about
$665 million in federal food stamps during fiscal year 1997.\28
Almost one-fifth of those no longer eligible were immigrant children. 
USDA determined that most of those who remained eligible did so
because they became citizens or met the exception of having 40 or
more work quarters. 

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.\29 About 70 percent of the 820,000 immigrants
remain ineligible for food stamps. 


--------------------
\28 Not all immigrant households had all their food stamp benefits
terminated.  Many of those affected may have lived in households with
both immigrants and U.S.  citizens and therefore had their benefits
reduced rather than eliminated.  According to USDA, about 62 percent
of immigrant households receiving food stamps in 1996 also included
U.S.  citizens, mostly children. 

\29 The number estimated to no longer be eligible for food stamps due
to their immigrant status for fiscal year 1999 is lower than for
fiscal year 1997 because of a general decline in the number of food
stamp recipients and an increase in the number of immigrants
estimated to become naturalized citizens and therefore eligible for
food stamps. 


      SOME STATES REPLACE LOST
      FOOD STAMP BENEFITS FOR
      IMMIGRANTS
---------------------------------------------------------- Letter :5.2

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.  State appropriations for these
programs totaled almost $187 million for 1998.  Eight states are
purchasing federal food stamps, four states are issuing food stamp
benefits through their electronic benefit transfer (EBT) system, and
two states developed their own food voucher or cash assistance
programs.  Most of these programs' benefit levels and eligibility
criteria, with the exception of immigrant status, reflect the federal
Food Stamp program and were implemented immediately after federal
benefit terminations on September 1, 1997.  According to our 1997
survey, the majority of the remaining states are not replacing or are
not planning to replace the terminated food stamp benefits for legal
immigrants.\30 Table 2 provides more detailed information on these
programs. 



                                     Table 2
                     
                      State-Funded Food Stamp or Other Food
                               Assistance Programs

                                                                     State funds
                                        Program                     appropriated
                  Eligible immigrant    starting       Individuals     , FY 1998
State             population            date              served\a    (millions)
----------------  --------------------  ------------  ------------  ------------
States purchasing food stamp
--------------------------------------------------------------------------------
California        Pre-reform children   Sept. 1,            56,000         $35.6
                  and elderly           1997

Florida           Pre-reform elderly\b  Sept. 30,           16,100          23.0
                                        1997

Nebraska          Pre-reform (all)      Aug. 1, 1997         1,100            .6

New Jersey\c      Pre-reform children,  Sept. 1,             5,700          15.0
                  disabled, and         1997
                  elderly

New York          Pre-reform children,  Sept. 1,            73,700          47.0
                  disabled, and         1997
                  elderly

Ohio\c            Pre-reform disabled   Apr. 1, 1998         3,400           1.0
                  and elderly

Rhode Island      Pre-reform (all)      Sept. 1,             5,700           3.5
                                        1997

Washington        Pre-reform and new    Sept. 1,            14,800          28.0
                  (all)                 1997


States issuing state-funded
--------------------------------------------------------------------------------
Connecticut       Pre-reform and new    Apr. 1, 1998         4,500           1.3
                  (all)

Illinois          Pre-reform children,  Jan. 1, 1998         2,700           4.7
                  disabled, and
                  elderly

Maryland          Pre-reform and new    Oct. 1, 1997         1,800           2.0
                  children

Massachusetts     Pre-reform and new    Oct. 1, 1997        18,000          10.6
                  (all)


Other food assistance progra
--------------------------------------------------------------------------------
Minnesota\        State voucher or      Sept. 1,             8,100           4.7
                  cash assistance       1997
                  programs for pre-
                  reform (all)\b

Texas             Cash assistance for   Mar. 1, 1998        15,100           9.6
                  pre-reform disabled
                  and elderly

================================================================================
Total                                                      226,700        $186.6
--------------------------------------------------------------------------------
Note:  This table identifies state programs as of May 1998.  In June
1998, P.L.  105-185 was enacted to restore food stamp eligibility to
certain pre-reform immigrants. 

\a The states reported the figures as of various dates toward the end
of 1997 or the first half of 1998 or as estimates. 

\b Assistance for new immigrants limited to those residing in Florida
as of Feb.  1, 1997, and those residing in Minnesota as of July 1,
1997. 

\c Some counties in New Jersey and Ohio are also issuing state-funded
food stamps using EBT. 

\d Illinois and Maryland provide EBT through the federal system, and
Connecticut and Massachusetts provide EBT through a state system. 

Source:  GAO analysis and USDA. 

Instead of setting up an entirely new state food assistance program,
Washington was the first of eight states to contract with USDA to
purchase federal food stamps with state funds.\31 A provision in the
Emergency Supplemental Appropriations Act of 1997 (P.L.  105-18) made
it possible for the states to purchase federal food stamp coupons to
provide nutrition assistance to individuals, including immigrants,
made ineligible for federal food stamps.  According to Washington
state officials, allowing the states to purchase federal coupons
saves the states the expense of creating their own voucher programs
and makes the program more seamless to recipients and grocery store
merchants.  States are required to pay USDA the value of the benefits
plus the costs of printing, shipping, and redeeming the coupons. 

The majority of the states replacing lost federal food stamps,
however, allow eligibility only to certain immigrant categories. 
According to state-reported participation rates, about one-quarter of
immigrants who no longer qualify for federal food stamps participate
in state-funded food assistance programs.  Most of these state
programs target immigrants generally considered most vulnerable, such
as children under age 18, the disabled, and the elderly--those aged
65 and older.  California, with the largest population of immigrants,
chose to provide state-funded food stamps to pre-reform immigrants
younger than 18 or those aged 65 and older--about 56,000 of the
estimated 151,700 immigrants whose federal benefits were terminated. 
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. 

Like most pre-reform immigrants, new immigrants are also restricted
from receiving federal food stamps.  Currently, 6 of the 14 states
with food stamp replacement programs--Connecticut, Florida, Maryland,
Massachusetts, Minnesota, and Washington--allow eligibility to some
new immigrants.  Two of these states, however, limit food assistance
to those living there as of 1997.  At the time of our review,
officials in these states could not determine the specific number of
immigrants receiving state-
funded benefits that were new immigrants. 


--------------------
\30 See GAO/RCED-98-41, Dec.  18, 1997. 

\31 States that chose to purchase food stamps had to submit, for
USDA's approval, a state plan describing the conditions and
procedures under which the food stamps could be issued.  USDA also
provided states with guidance to operate the program. 


      SOME STATES INCREASE FUNDING
      FOR EMERGENCY FOOD
      ASSISTANCE
---------------------------------------------------------- Letter :5.3

Although most states have no program specifically designed to replace
federal food stamps for immigrants, they do provide temporary food
assistance through emergency programs and local food banks or
pantries.  For example, the states match a level of federal funds for
emergency food providers through The Emergency Food Assistance
Program (TEFAP).\32 Many states, anticipating the increased demand
for food assistance by immigrants, increased funding to food banks
and emergency food providers.  Colorado, for example, appropriated $2
million in 1998 for a new program to provide emergency assistance,
including food, to immigrants.\33

In addition to state-funded efforts, one locality we reviewed was
providing funds to local food banks.  In 1997, San Francisco added
$186,000 to the local food bank budget to set up three or four new
food distribution sites in highly populated immigrant communities. 
Immigrants no longer eligible for federal food stamp benefits
received notice by mail of these new distribution centers that told
them to present their letters to one of the distribution sites to
receive food on a weekly basis.  Local officials told us that the
food supply would last recipients 3 to 5 days. 

According to our 1997 study, some localities are working with local
organizations to plan for the expected increase in the need for food
assistance.\34 Organization officials fear their resources may be
insufficient to meet needs of individuals no longer eligible for food
stamps.  These officials do not believe their organizations can
replace the long-term assistance that federal food stamps provided. 
Furthermore, in a study conducted by the U.S.  Conference of Mayors,
most surveyed cities reported that immigrants' requests for emergency
food assistance increased by an average of 11 percent in the first
half of 1997.\35

Although concerns exist about the impact of benefit restrictions for
immigrants, such as the discontinuance of food stamps, no major
monitoring efforts are required or planned in the states we visited
or at the federal level.\36 Moreover, a recent study for the U.S. 
Commission on Immigration Reform identified that the states with
large immigrant populations had no comprehensive plans for monitoring
the impact of welfare reform eligibility changes on immigrants.\37 In
addition, many immigrant advocacy groups we interviewed expressed
concern about states' and localities' ability to meet immigrants'
income, food, and medical needs.  Some advocacy groups noted they
were conducting studies to measure the impact of federal restrictions
on those affected. 


--------------------
\32 Established in 1981, TEFAP authorizes federal funding for states
to provide food and surplus dairy commodities to low-income
households.  States administer the program and select the
distribution sites, such as county offices or food banks, from which
to distribute the food.  In fiscal year 1995, federal appropriations
for the program were $65 million. 

\33 The sources of this information are the Immigrant Policy Project
at the National Conference of State Legislatures; State Government
Responses to the Food Assistance Gap, Food Research and Action Center
and Second Harvest (Washington, D.C.:  1997); and GAO/RCED-98-41,
Dec.  18, 1997. 

\34 See GAO/RCED-98-41, Dec.  18, 1997.  The five localities reviewed
include Los Angeles County, California; Denver, Colorado; Hartford,
Connecticut; Detroit, Michigan; and Houston, Texas. 

\35 The U.S.  Conference of Mayors Task Force on Welfare Reform
Implementation, Dec.  16, 1997. 

\36 The Department of Health and Human Services (HHS), in conjunction
with USDA and INS, has commissioned a study on the economic and
health status of immigrants, their communities, and the organizations
that serve them in two cities, Los Angeles and New York, with a large
immigrant population.  This study will also describe how these groups
have adapted to the welfare reform changes. 

\37 Impact of the Federal Welfare Reform on Immigrants, study by the
Lewin Group, Inc., for the U.S.  Commission on Immigration Reform
(Washington, D.C.:  1997). 


   SOME STATES OFFER IMMIGRANTS
   NATURALIZATION ASSISTANCE
------------------------------------------------------------ Letter :6

In addition to the federal and state programs already discussed, at
least 12 states help immigrants through statewide naturalization
assistance programs, according to information from the National
Immigration Law Center.\38 Helping immigrants gain citizenship offers
them the ability to keep or obtain eligibility for federal benefits
and reduces state spending on immigrants' benefits.  Even with
state-provided assistance, the naturalization process takes time and,
according to INS, the number of applications continues to increase. 

Naturalization assistance ranges from providing referrals to
community services to classes in preparation for naturalization and
financial assistance with the $95 application fee.\39 Anticipating
the restrictions for immigrants under welfare reform, New Jersey
allocated $4 million for 1997 and 1998, which was matched by private
funds, for its naturalization outreach program.  New Jersey's program
includes English and civics classes, legal assistance with
applications, and help with medical waivers for exemption from
citizenship or language testing.  Washington, which also began
naturalization efforts before welfare reform, boosted funding for its
program to $1.5 million per year for state fiscal years 1998 and
1999.  Program services include helping immigrants with completing
naturalization applications, paying application fees, and providing
educational services.  Since fiscal year 1998, the state reports an
average of 1,200 individuals participating in the program each month. 
In addition, two of the localities we visited--Seattle and San
Francisco--also established naturalization programs to assist
immigrants, especially those affected by the loss of federal
benefits. 

Though states and localities have naturalization programs, officials
administering these programs expressed concern about the length of
time it takes to process citizenship applications.  In the three
cities we visited, immigrants applying for naturalization had to wait
up to 3 years before completing the process.\40 According to INS, the
average time for processing naturalization applications is more than
2 years nationwide.  In some of the nation's cities with the largest
immigrant populations, the waiting time varies:  it takes more than a
year and a half in New York City, almost 3 years in Los Angeles, and
more than 5 years in Miami.  In addition, INS reported significant
increases in the number of naturalization applications, from 423,000
in 1989 to more than 1.2 million in fiscal year 1996.  INS officials
cited the benefits that immigrants would gain from their citizenship
among the reasons they expect the number of applications to remain
high.\41


--------------------
\38 The following 12 states have statewide naturalization programs: 
Arizona, Florida, Hawaii, Illinois, Maryland, Massachusetts,
Minnesota, Nebraska, New Jersey, New York, Rhode Island, and
Washington, according to information gathered by the National
Immigration Law Center. 

\39 The naturalization application fee is scheduled to increase to
$225 as of Oct.  1, 1998. 

\40 Average processing times for naturalization applications during
fiscal year 1997 were over 9 months in Seattle, almost 1 year in
Newark, and just under 3 years in San Francisco, according to INS
estimates. 

\41 See Alien Applications:  Processing Differences Exist Among INS
Field Units (GAO/GGD-97-47, May 20, 1997). 


   STATES CONTINUE TO FACE
   CHALLENGES IMPLEMENTING NEW
   RESTRICTIONS FOR IMMIGRANTS
------------------------------------------------------------ Letter :7

The eligibility changes under welfare reform for immigrants expanded
states' administrative responsibilities and added financial
responsibilities for those states choosing to provide replacement
benefits.  Due to these changes, the states will be revising
procedures and automated systems to meet the new requirements for
verifying an immigrant's eligibility for welfare benefits.  Although
some states have concerns about correctly implementing these new
requirements, federal agencies neither require nor plan special
monitoring efforts for determining if the states are correctly
determining eligibility.  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
---------------------------------------------------------- Letter :7.1

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.  Program officials in the states we visited noted that
completing the recertifications was time consuming.  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. 

Officials in the states we visited anticipated making changes to
their automated systems or encountering additional work to implement
the new verification procedures or develop separate eligibility
determination processes to reflect new distinctions among programs. 
With the new restrictions, states need more information on alien
status for making eligibility determinations.  Until INS issues the
final regulations, the states can follow the interim INS verification
guidelines.  States will have 2 years after final regulations are
issued to ensure that their verification systems comply with the
regulations.  According to INS, either proposed or interim
regulations will most likely be issued in July 1998.  States will
face the challenge of modifying their procedures and automated
systems for determining citizenship or alien status before making
eligibility determinations for federal programs.  According to the
American Public Welfare Association, the states must modify their
software programs to address the differing eligibility criteria under
welfare reform.  In addition, several officials in the states we
reviewed reported that it takes additional steps and time for
caseworkers to verify the alien status of immigrants applying for
benefits and to determine or recertify their eligibility for federal
programs.  Officials often noted the potential for confusion in
making accurate eligibility decisions, prompting concerns about
providing benefits to those eligible and denying benefits to those
who no longer qualify. 

Although concerns exist about correctly implementing welfare
restrictions for immigrants, federal agencies neither require nor
plan special monitoring efforts for determining if the states are
correctly determining immigrants' eligibility for benefits.  At the
time of our review, federal officials for the Medicaid, SSI, and Food
Stamp programs told us that errors in providing benefits to
ineligible immigrants could be detected in their quality control
reviews.  HHS officials commented that TANF program rules require no
quality control reviews, and the only method they would have for
monitoring immigrant restrictions, such as the length of time an
individual receives TANF benefits, is through TANF's annual single
state audit.  USDA officials reported that several states did not
implement the new food stamp restrictions for immigrants by the
required time.\42 USDA billed one state for the amount of federal
food stamp benefits provided to immigrants after the restrictions
were to have been implemented.  By January 1998, USDA officials
indicated that as far as they knew all states had fully implemented
the food stamp restrictions for immigrants. 

Issues that the states will face in the future include implementing
the new deeming requirements and enforcing the affidavits of support. 
At the time of our review, the states we visited were waiting for
federal or state guidance on implementing these requirements and were
uncertain about how they would enforce the new affidavits of support. 
Welfare reform allows federal, state, and local agencies to seek
reimbursement for benefits provided to sponsored immigrants; however,
some officials expressed concern about the possible difficulties of
locating sponsors who may have moved without reporting a change of
address to the INS.  The new affidavits of support have been in use
since December 19, 1997, for new immigrants and for those whose alien
status is changing on or after that date as, for example, from
temporary residency to lawfully admitted for permanent residence. 


--------------------
\42 According to USDA, the following 17 states, either statewide or
within counties or cities, did not implement the restrictions on
time:  Alaska, Arkansas, California, Delaware, Hawaii, Kansas, Maine,
Maryland, Massachusetts, Minnesota, Missouri, New Mexico, New York,
Pennsylvania, Tennessee, Vermont, and West Virginia. 


      CHALLENGES FOR STATE-FUNDED
      PROGRAMS
---------------------------------------------------------- Letter :7.2

As a result of the welfare reform law, states faced major decisions
on whether to provide assistance to immigrants no longer entitled to
federal benefits.  States that chose to provide state-funded
assistance to immigrants face some long-term challenges funding and
implementing these programs.  Officials in the states we reviewed
cautioned us that future funding for new state programs is uncertain. 
Although currently approved, funding for programs was appropriated
for only a limited time--ranging from 1 to 2 years in the states we
reviewed--and passed during favorable economic times.  In New Jersey,
for example, the state-funded food stamp program was funded through
June 30, 1998, and the state needs to pass legislation to continue
the program.  California officials reported that although funding for
state-provided medical assistance, food stamps, and TANF is not a
pressing issue now, future funding is somewhat uncertain.  They said
the continuation of these state-funded programs depends on the
state's economy and on legislative decisions. 

The states we reviewed reported determining and tracking the fiscal
claims for state and federal funds in parallel programs as an
implementation challenge.  Implementing state-funded food stamp
programs, for example, requires states to track and report to USDA
the separate federal and state food stamp issuances.  In addition,
some state officials reported that determining eligibility and
calculating separate federal and state benefit amounts for "mixed"
households--those with members who are citizens and immigrants--is
challenging.  A mixed household could have a new immigrant mother and
a citizen child who are receiving food stamps and cash and medical
assistance funded separately by federal and state dollars. 
Washington state officials noted that to some extent they can
calculate separate benefit amounts and funding sources because their
new computer system is designed to track this information. 
California officials reported they would have to reprogram their
automated systems to identify and track costs of benefits provided to
immigrants through federal and state programs.  California counties
manually tracked immigrants receiving benefits under certain programs
until the programming changes were completed. 


   OBSERVATIONS
------------------------------------------------------------ Letter :8

The welfare reform law represents a significant shift of
responsibility for decisions about aiding needy immigrants from the
federal government to the states.  Federal policy now gives the
states much latitude in restricting immigrants' eligibility for
welfare programs.  States' welfare policies vary in their treatment
of both pre-reform and new immigrants, according to our review.  For
many immigrants, the extent of assistance provided will depend on
state policies and other assistance available at the local level. 
For those federal benefits that the states could choose to continue,
almost all states did so.  For those federal benefits that were
terminated, many states chose to provide state-financed benefits for
at least some part of this population.  Few states, however,
completely replaced lost federal benefits for either pre-reform or
new immigrants.  Some local programs, including food banks, already
report an increased need for food assistance due to the welfare
reform restrictions for immigrants. 

Our work reviewed the significant changes prompted by welfare reform
in its early stages--changes affecting immigrants, including both
those immigrating before and after the passage of the law and those
considering future immigration.  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.  In addition, the states' choices
about providing additional benefits to immigrants, whether pre-reform
or new, were made during favorable economic times and could change
during less prosperous times.  Furthermore, how federal, state, and
local agencies will enforce the new affidavits of support is unknown. 
In general, it is too soon to measure the long-term impact of welfare
reform on immigrants and immigration. 


   AGENCY COMMENTS
------------------------------------------------------------ Letter :9

In commenting on a draft of this report, HHS took no exception with
the report findings, and USDA generally agreed with the findings and
observations.  Their comments are included in appendixes II and III,
respectively.  USDA also noted the recent enactment of legislation
that restores eligibility for federal food stamp benefits to
approximately 250,000 legal immigrants beginning in November 1998,
which the report discusses.  In addition, USDA stated that it is too
early to know the extent to which states operating state-funded food
assistance programs will continue their programs for those
noncitizens in need of food assistance who remain ineligible for
federal benefits.  We agree that it is too early to know how the
states will respond to this new legislation.  HHS and USDA also
provided technical comments, which we incorporated as appropriate. 

We also provided copies of a draft to SSA, INS of the Department of
Justice, and the states of California, New Jersey, and Washington. 
They provided technical comments, which we incorporated as
appropriate. 


---------------------------------------------------------- Letter :9.1

We are sending copies of this report to the Secretaries of USDA and
HHS and the Commissioners of SSA and INS.  We will also make copies
available upon request.  If you or your staff have any questions
about this report, please contact Gale C.  Harris, Assistant
Director, at (202) 512-7235, or Suzanne Sterling, Senior Evaluator,
at (202) 512-3081.  Other major contributors to this report are
Elizabeth Jones, Deborah Moberly, and Julian Klazkin. 

Sincerely yours,

Mark V.  Nadel
Associate Director
Income Security Issues


BENEFITS AVAILABLE TO IMMIGRANTS
IN THREE STATES VISITED
=========================================================== Appendix I

This appendix summarizes information on the benefits available to
needy immigrants\43 in the locations we visited:  San Francisco
County, California; Essex County, New Jersey; and Seattle,
Washington.  The information reflects the states' actions before
enactment of P.L.  105-185 (signed into law in June 1998) that will
restore, effective November 1, 1998, federal food stamp eligibility
for some pre-reform immigrants. 


--------------------
\43 In this app., we generally discuss the rights and
responsibilities of immigrants who are lawfully admitted for
permanent residence; however, where relevant, we do mention how the
law has affected other groups of noncitizens such as refugees and
asylees. 


   CALIFORNIA
--------------------------------------------------------- Appendix I:1

According to INS, as of April 1996 California had about 3.7 million
or 35 percent of immigrants living in the United States and ranked as
the state with the largest immigrant population.  Besides continuing
to provide Temporary Assistance for Needy Families (TANF) and
Medicaid benefits to immigrants, California is funding a food stamp
program for some of those who lost federal benefits.  In addition to
the state programs available, San Francisco County provides
immigrants with food assistance through local food banks, cash
benefits through general assistance, and naturalization assistance
through community-based organizations. 


      TANF-COMPARABLE BENEFITS
------------------------------------------------------- Appendix I:1.1

California chose to provide TANF--through the state's CalWORKS
program--to immigrants regardless of their date of entry into the
country.  In May 1997, the immigrant caseload of 199,381 accounted
for almost 22.5 percent of California's total TANF caseload,
according to state estimates.  At an average grant of $192 a month,
it would cost the state over $178,000 a month to provide state-funded
cash assistance to the 931 eligible new immigrant families it
estimated would enter California between August 22, 1996, and
December 31, 1997. 


      MEDICAL ASSISTANCE
------------------------------------------------------- Appendix I:1.2

In addition to TANF-comparable benefits, California is providing
Medicaid or comparable medical assistance--through its Medi-Cal
program--to immigrants regardless of their date of entry, which has
increased state spending and prompted changes to state and county
data systems to track costs.  California officials estimate that
about 2,797 or 20 percent of new immigrants will apply for Medi-Cal
benefits each month.  On the basis of this estimate, by the year
2001, an additional 168,000 immigrants would apply for the
state-funded Medi-Cal benefits. 


      GENERAL ASSISTANCE
------------------------------------------------------- Appendix I:1.3

California does not fund statewide assistance specifically to replace
SSI benefits; however, counties must have general assistance
programs.  These benefits may be available for nondisabled pre-reform
immigrants who are not already receiving SSI and for new immigrants
who are no longer eligible for SSI.  San Francisco County, for
example, provides general assistance to immigrants no longer eligible
for SSI of up to $345 per month, which is lower than the average SSI
benefit for immigrants of $532 per month.  According to a study done
in San Francisco County, for each elderly and disabled immigrant no
longer eligible for federal assistance on the basis of immigration
status who receives general assistance or some form of local cash
assistance, the city and county will incur an additional annual cost
of between $4,140 and $7,800 per person.\44 If SSI benefits had not
been restored, San Francisco estimated that it would have cost the
city and county as much as $31 million to provide general assistance
to an estimated 7,500 immigrants during the first fiscal year after
the termination of SSI benefits. 


--------------------
\44 The Mayor's Welfare Reform Task Force Final Report:  Strategies
for Welfare Reform in the City and County of San Francisco, City and
County of San Francisco Department of Human Services (San Francisco,
Cal.:  May 1997). 


      FOOD ASSISTANCE
------------------------------------------------------- Appendix I:1.4

The state created the California Food Assistance Program for Legal
Immigrants to provide food stamps to certain categories of pre-reform
immigrants.  The state-funded food stamps provide these immigrants
with the same amount of benefits as those previously received under
the federal program and are available to those pre-reform immigrants
younger than 18 and aged 65 and over.  The program, which is
authorized to operate through July 1, 2000, received appropriations
of $35.6 million for fiscal year 1998.  Begun on September 1, 1997,
the program replaces lost federal food stamps for about 56,000 of the
151,700 pre-reform immigrants who lost their federal benefits,
according to state estimates.  New immigrants are not eligible for
state-funded food assistance; however, some local food assistance is
available, officials said. 

Although San Francisco County explored the possibility of providing a
food stamp program for those no longer eligible for federal or state
food stamps, such as adults under age 65, it has not established such
a program.  The county, however, provided additional funding of
$186,000 to a local food bank to increase purchases and add three or
four new distribution centers targeted to reach immigrants no longer
eligible for food stamps.  These immigrants received notice by mail
of the new centers and were told to present their letters at the
distribution centers to receive food, which they may claim on a
weekly basis.  To increase immigrants' use of the distribution
centers, the county and the local food bank are also planning to
provide more culturally appropriate foods. 


      NATURALIZATION ASSISTANCE
------------------------------------------------------- Appendix I:1.5

California has no statewide naturalization assistance program;
however, selected counties and localities in the state provide some
assistance.  Thirty-five of the state's 58 counties provide some
naturalization assistance.\45 San Francisco County formed the
Naturalization Project to provide assistance targeted to the most
vulnerable of the immigrant population--those expected to lose SSI
before its retention and those scheduled to lose federal food stamp
benefits.  The goals of the project--comprised of a coalition of city
and county government departments, community-based organizations,
senior services providers, schools, colleges, private businesses,
foundations, and concerned citizens--are to substantially expand
service capacity; guarantee responsive, individualized high-quality
services; and create a structured network of community services by
leveraging all available public, private, and community resources. 
Funding for this project includes a grant of over $1 million from a
private foundation for 1997. 


--------------------
\45 Survey conducted by the Public Policy Institute of California on
Citizenship Activity in California counties for 1997 and 1998. 


   NEW JERSEY
--------------------------------------------------------- Appendix I:2

According to INS, as of April 1996 New Jersey had approximately
462,000 or over 4 percent of immigrants living in the United States,
making it the state with the fifth largest immigrant population. 
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.  In addition to these state-level
programs, Essex County provides some food assistance to its
immigrants through local food pantries and soup kitchens. 


      TANF-COMPARABLE BENEFITS
------------------------------------------------------- Appendix I:2.1

New Jersey chose to continue TANF benefits for pre-reform immigrants
and to provide these benefits to new immigrants following the federal
5-year bar.  The Work First New Jersey program, which is administered
at the county level, provides these benefits.  New Jersey combined
its TANF and general assistance programs in January 1997 to form the
Work First New Jersey program.  The state provides no state-funded
cash assistance to new immigrants during the 5-year federal bar. 


      MEDICAL ASSISTANCE
------------------------------------------------------- Appendix I:2.2

New Jersey provides Medicaid to pre-reform and new immigrants
following the 5-year bar.  In addition, the state provides funding
for Medicaid-comparable assistance to new immigrants during the
5-year federal bar.  The state, however, plans to reduce the medical
benefits available to new immigrants to emergency services only.\46
According to New Jersey officials, the state must pass legislation to
change the current state law, which requires full medical benefits
for all individuals, including immigrants. 

New Jersey officials also noted that an estimated 2,000 noncitizens
no longer eligible for federal Medicaid assistance because they did
not meet the new qualifications in the welfare reform law, such as
Permanently Residing Under the Color of Law (PRUCOL), were receiving
state-funded medical assistance.  When the state passes legislation,
1,900 of these individuals' medical assistance benefits will be
reduced to cover only emergency services. 

In addition to providing Medicaid and state-funded medical
assistance, the state funds several hospitals to treat indigent
individuals, including immigrants, through New Jersey's Charity Care
program. 


--------------------
\46 The state will continue to provide medical assistance to victims
of domestic violence. 


      GENERAL ASSISTANCE
------------------------------------------------------- Appendix I:2.3

Along with the TANF portion of the Work First New Jersey program
discussed, the general assistance portion of the program provides
benefits to single adults or childless couples.  Certain noncitizens
who remain in the country legally, such as PRUCOLs, but no longer
meet the eligibility criteria for federal programs may be eligible
for general assistance.  They may receive benefits until they can
apply for naturalization, as well as for an additional 6 months after
they apply, which was the time estimated for completing the
naturalization process.  State officials were unsure, however,
whether the 6-month restriction would be enforced because the average
naturalization processing time in New Jersey now is much longer than
the 6-month estimate.  New immigrants are barred from receiving Work
First New Jersey benefits during the first 5 years of residency in
the country.  The benefit level of general assistance provided
through Work First New Jersey averages $140 per month for employable
individuals and $210 per month for unemployable individuals; both
rates are lower than the average monthly SSI benefit of $515.25. 


      FOOD ASSISTANCE
------------------------------------------------------- Appendix I:2.4

New Jersey created the State Food Stamp program in August 1997 to
provide benefits for certain categories of pre-reform immigrants who
lost their federal food stamps--those younger than 18, aged 65 and
over, or who are disabled.  This program, which was created by an
executive order of the state's governor, provided $15 million for
contracting with USDA to purchase federal food stamp benefits for
this population through June 1998.  However, as of June 12, 1998,
legislation was pending to continue the state-funded food stamp
benefits beyond this time.  The legislation would also expand
eligibility to include those between the ages of 18 and 65 who have
at least one child under 18. 

The program's eligibility criteria and benefit levels mirror the
federal program's, with the exception of not requiring citizenship. 
In addition, the program requires participants to apply for
citizenship within 60 days of their eligibility to do so.  New Jersey
officials originally estimated that 17,000 immigrants lost their
federal food stamp benefits due to welfare reform changes; however,
as of February 1998, officials reported that the program was
providing state-funded benefits to about 5,700 immigrants.  Although
new immigrants are ineligible for state-funded food assistance, all
immigrants are eligible to receive food assistance through local food
pantries and soup kitchens statewide. 


      NATURALIZATION ASSISTANCE
------------------------------------------------------- Appendix I:2.5

New Jersey provided funding for a statewide naturalization assistance
program run through a coalition of 31 service providers in the
Immigration Policy Network.  The program began providing assistance
in January 1997 with $2 million in state funds and $2 million in
private funds.  The project initially targeted those immigrants
expected to lose SSI benefits before they were reinstated.  Later in
the year, the project was expanded with an additional $2 million in
public funds and $2 million in private funds to provide assistance to
those immigrants scheduled to lose federal food stamps.  Services
provided through the program include English language and civics
classes, legal assistance with applications, and assistance with
medical waivers for exemption from citizenship or language testing. 
As of February 1998, about 4,200 individuals participating in the
program had completed naturalization applications.  The program is
scheduled to continue through December 1998. 


   WASHINGTON
--------------------------------------------------------- Appendix I:3

According to INS, as of April 1996 approximately 174,000 or about 2
percent of immigrants in the United States lived in the state of
Washington, making it the state with the 10th largest immigrant
population.  Anticipating the federal restrictions under welfare
reform, the governor proposed programs that would treat immigrants in
need the same as citizens.  Besides continuing to provide TANF and
Medicaid benefits for pre-reform immigrants and providing these
benefits to new immigrants following the 5-year bar, Washington
devised several new state-funded programs to replace lost federal
benefits and provides naturalization assistance as well.  In addition
to these state programs, Seattle created its own naturalization
assistance program for immigrants and refugees losing federal and
state benefits. 


      TANF-COMPARABLE BENEFITS
------------------------------------------------------- Appendix I:3.1

Washington chose to continue TANF benefits for pre-reform immigrants
and to provide these benefits to new immigrants after the 5-year bar. 
In November 1997, the state began providing state-funded cash
assistance for new immigrants during the federal 5-year bar. 
Immigrants are eligible to apply for these benefits after living in
the state for 12 months.  With the exception of not requiring
citizenship, the state-funded program applies the same eligibility
and deeming rules as the TANF program and offers the same level of
benefits.  As of February 1998, approximately 230 immigrant families
were receiving state-funded cash assistance at a monthly cost to the
state of about $74,000. 


      MEDICAL ASSISTANCE
------------------------------------------------------- Appendix I:3.2

Washington provides Medicaid benefits to pre-reform and new
immigrants following the 5-year bar.  In August 1997, the state began
providing state-funded medical assistance to new immigrants during
the federal 5-year bar if they met the requirements considered to be
categorically needy.  Like the state-funded cash assistance program,
the state medical assistance program requires a residency period of
12 months.  With the exception of not requiring citizenship, the
program applies the same eligibility criteria and deeming rules as
the federal program and offers the same level of benefits.  As of
December 1997, a total of 389 immigrants participated in the program
at cost to the state of approximately $5,200 for that month. 

In addition to this state-funded medical assistance, some new
immigrants may receive additional state or local medical assistance
during their 5-year bar.  The types of assistance available include
medical care services for incapacitated, aged, blind, or disabled
people determined eligible for general assistance; emergency medical
services; and services for pregnant women and children not eligible
for the state medical assistance program. 


      GENERAL ASSISTANCE
------------------------------------------------------- Appendix I:3.3

Washington provides general assistance benefits for some new
immigrants who are no longer eligible for SSI.  Immigrants who are 18
and older and incapable of gainful employment for at least 90 days
can apply for the state's General Assistance-

Unemployable program.  This program provides an average monthly
benefit of $339, which is less than the average monthly SSI benefit
of $512. 


      FOOD ASSISTANCE
------------------------------------------------------- Appendix I:3.4

In 1997, Washington created the Food Assistance program to provide
state-funded food stamp benefits for pre-reform and new immigrants no
longer eligible for federal food stamps.  At the state's initiative,
Washington was the first of eight states to contract with USDA to
purchase federal food stamps.  The eligibility criteria and benefit
levels mirror the federal program's, with the exception of not
requiring citizenship.  The state program began with a budget of $65
million for fiscal years 1998 and 1999.  The state estimated that the
program would serve approximately 38,363 immigrants in 1998; however,
state officials mentioned that this estimate did not account for
those immigrants who became citizens or qualified for federal
benefits due to an exception such as being credited with 40 work
quarters.  As of January 1998, the program was serving about 14,800
immigrants at a cost to the state of approximately $1.7 million for
that month. 


      NATURALIZATION ASSISTANCE
------------------------------------------------------- Appendix I:3.5

Washington's naturalization assistance program, which began before
welfare reform, targets its assistance to those immigrants expected
to lose federal benefits.  For fiscal years 1998 and 1999, funding
for the program totaled approximately $1.5 million per year. 
According to state officials, an average of 1,200 immigrants
participated in the program each month since July 1997.  Washington
officials estimate that over 70 percent of the participants complete
their classes and file a citizenship application.  Services provided
through the program include help with completing applications,
payment of citizenship application and photograph fees, and training
courses to help them pass citizenship exams. 

Seattle also provides several services for immigrants through its
naturalization program--the New Citizen Initiative.  Begun in 1996,
the program is administered by the city's Department of Housing and
Human Services in partnership with the Seattle Public Library and a
consortium of community-based organizations.  The program provides a
variety of services for immigrants, including a naturalization
information clearinghouse, and prioritizes its services for
immigrants who are elderly, disabled, or have inadequate language and
literacy skills.  The city has funded this initiative with $500,000
for fiscal years 1998 and 1999, and private organizations are
providing an additional $200,000 in funding.  Program officials
estimate that assistance will be provided to between 500 and 800
immigrants during 1998. 




(See figure in printed edition.)Appendix II
COMMENTS FROM THE DEPARTMENT OF
HEALTH AND HUMAN SERVICES
=========================================================== Appendix I



(See figure in printed edition.)




(See figure in printed edition.)Appendix III
COMMENTS FROM THE U.S.  DEPARTMENT
OF AGRICULTURE
=========================================================== Appendix I



(See figure in printed edition.)

RELATED GAO PRODUCTS

Welfare Reform:  States Are Restructuring Programs to Reduce Welfare
Dependence (GAO/HEHS-98-109, June 18, 1998). 

Medicaid:  Early Implications of Welfare Reform for Beneficiaries and
States (GAO/HEHS-98-62, Feb.  24, 1998). 

Welfare Reform:  State and Local Responses to Restricting Food Stamp
Benefits (GAO/RCED-98-41, Dec.  18, 1997). 

Illegal Aliens:  Extent of Welfare Benefits Received on Behalf of
U.S.  Citizen Children (GAO/HEHS-98-30, Nov.  19, 1997). 

Alien Applications:  Processing Differences Exist Among INS Field
Units (GAO/GGD-97-47, May 20, 1997). 

Food Stamp Program:  Characteristics of Households Affected by Limit
on the Shelter Deduction (GAO/RCED-97-118, May 14, 1997). 

Welfare Reform:  Implications of Proposals on Legal Immigrants'
Benefits (GAO/HEHS-95-58, Feb.  2, 1995). 


*** End of document. ***