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State Trends
10/21/97

The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 ended immigrants' access to a broad range of means-tested programs. The new bars, restrictions, and options created a number of challenges for states and localities, including, most importantly, the anticipation of significant cost-shifts from federal programs to state and local safety net programs. In brief, the law made distinctions between "qualified" immigrants who are generally eligible for benefits (primarily legal immigrants and refugees) and "not qualified" immigrants generally denied all but emergency assistance (unauthorized immigrants and "PRUCOL", e.g., those residing here under statutory authority or administrative discretion). A second distinction is based on the date the immigrant entered the U.S. Those who were residing in the U.S. before the enactment of welfare law generally retained benefits; those who arrive after enactment are generally barred from means-tested benefits for five years, and then are subject to deeming until they attain citizenship or 40 quarters of work. Finally, the law offers states options on whether to provide or deny certain public benefits to legal immigrants.

The new law also raised constitutional questions at both the federal and state levels regarding the ability of states to discriminate in providing services based on immigrant status. As many as 22 states may have statutory or constitutional barriers to limiting assistance to categories of legal immigrants. For example, New York's constitution requires benefits for all needy residents; Colorado's Old Age Pension is available to all residents; and Pennsylvania can not discriminate between aliens and citizens.

After the federal welfare law was enacted in August 1996, many policymakers were puzzled by the sweeping cuts on immigrants' benefits, particularly for refugees and long-term residents with no other source of support. While states sought greater flexibility in the management of the welfare system, they did not expect or want the federal government to absolve itself from responsibility for assistance to legal immigrants and refugees. State and local officials have begun to understand the complex intersection between welfare programs and immigrant eligibility dictated in the new federal law, and have begun to assess the size and needs of their immigrant populations. This has led to reviews of their cash, medical, and nutritional programs to patch gaps in the safety net created by the federal government.

In general, most states seem to be codifying the federal welfare law as it relates to qualified and not qualified aliens: providing assistance to those here prior to enactment; denying benefits to new arrivals; and grappling with providing services for populations considered the most vulnerable, such as children, the elderly, and the disabled. While not a comprehensive survey of the states, the following summary and examples provide an indication of state trends in cash, medical, and nutritional assistance, as well as naturalization efforts.

States have the option to provide or deny Temporary Assistance for Needy Families (TANF) to qualified aliens residing in the U.S. before August 22, 1996, the date of enactment of the welfare reform law. New arrivals are barred from federal means-tested benefits (TANF, SSI, Food Stamps, and Medicaid) for their first five years in the country. Refugees and other humanitarian categories, as well as veterans and active-duty military, are exempt from the five-year bar. States may provide or deny state-funded programs to current residents and newly-arriving immigrants. State- and local-funded programs may deem for new immigrants when the newly-enforceable affidavits of support become effective (expected fall 1997). Prior to the 1997 budget act, states also faced the difficult decision of whether they would provide cash assistance to the elderly, blind, and disabled legal immigrant residents who were to lose their SSI in August/September of 1997.

TANF. As of July 15, 1997, all 50 states, the District of Columbia, the U.S. territories of Guam and the Virgin Islands, the Commonwealth of Puerto Rico, and many Indian tribes had filed TANF plans with the U.S. Department of Health and Human Services (HHS). Of those, only Alabama has chosen to deny TANF to all immigrants. Earlier state plans from Kentucky, West Virginia, Louisiana, and Wyoming indicated that TANF benefits would be denied, but all four states have since changed or clarified their plans to provide TANF to qualified immigrants. Though post-enactment immigrants may not receive federal TANF money for five years, some states decided to provide state-funded TANF benefits. Utah law will provide up to 36 months of cash assistance to legal resident noncitizens barred from receipt of federal benefits. Washington will continue eligibility for new arrivals, but requires 12 months residency. Nebraska allows qualified immigrants to receive aid to dependent children, regardless of their date of entry, though deeming applies. Ohio passed legislation requiring the Ohio Department of Human Services to draft regulations on eligibility, including residency and citizenship requirements, for the Ohio Works program and Ohio's disability assistance program. New York will provide safety net assistance to new arrivals and PRUCOLs; in general, public assistance benefits for the first twelve months of New York residency will be limited to either fifty percent of the New York benefit or the benefit available in the state of prior residence, whichever rate is higher.

State-Funded Cash Benefits. The welfare law established a bar on SSI for most noncitizens. In 1997, the federal government restored benefits for immigrants receiving SSI as of August 22, 1996, and those lawfully residing in the U.S. as of August 22, 1996 who become disabled. Those who become citizens or have 40 work quarters may receive SSI. Refugees and other humanitarian arrivals are exempt from the SSI bar for seven years. Veterans are also exempt from the SSI bar. Immigrants no longer eligible are residents as of August 22, 1996 who become 65 years old after that date, but are not disabled; and new immigrants arriving after the welfare law's enactment.

Prior to the federal reprieve in the 1997 Balanced Budget Act, states considered and often put in place one of three options in providing an SSI-replacement cash benefit for immigrants: access to or expansion of the state's general assistance program, access to or expansion of the state's SSI-supplement or disability benefit program, and creation of a new program. For example, Rhode Island legislation considered a new cash assistance program for disabled and elderly legal immigrant residents who were receiving state supplementary assistance on July 1, 1997 but lost eligibility for federal benefits due to the federal welfare reform law. Most states, however, are considering the first two methods. Washington has enacted legislation permitting immigrants who lose their SSI to apply for the state's general assistance-unemployable program. Enacted Colorado legislation makes legal immigrants, regardless of date of entry, eligible for the state's Old Age Pension, Aid to the Blind, and Aid to the Needy Disabled programs; sponsor deeming may apply. Nebraska allows qualified immigrants to receive aid to the aged, blind and disabled, regardless of their date of entry, though deeming applies. Illinois legislation allocates $10 million for an SSI-replacement program, separate from the state's general assistance program, which is not administered statewide. With the restoration of federal SSI benefits for a significant portion of the affected immigrant populations, states face new decisions regarding the use of the money and programs intended to replace SSI.

Deeming. In general, most states are expecting the new, enforceable affidavits of support to be reliable tools and plan to deem in accordance with the welfare reform law. This means that the immigrant's sponsor's income, and that of the sponsor's spouse, will be attributed to the immigrant in determining eligibility until the immigrant has achieved citizenship or 40 qualifying work quarters. Newly enacted laws in Arizona, California, Colorado, Florida, Maryland, Nebraska, Rhode Island and Washington include deeming provisions. The Washington law does make an exception for victims of domestic violence, for veterans, and in cases where the sponsor is dead or incapacitated.

Residency. Georgia permits qualified immigrants in the U.S. before August 22, 1996 to receive TANF; newly-arriving immigrants are eligible but aid is limited to 12 months of cash assistance. Washington will continue TANF, Medicaid, and SSBG services to legal immigrants; those arriving after August 22, 1996 must reside in the state for 12 months before applying for benefits. Maryland will provide TANF to legal immigrants who were in the U.S. before August 22, 1996 and resided in the state for 12 months or moved to the state from another that provided cash assistance to immigrants; immigrants arriving after August 22, 1996 must meet program and residency requirements. As noted above, New York will restrict public assistance benefits for all new residents for the first twelve months in the state.

Domestic Violence. Several states have introduced provisions which exempt immigrant women and their children from citizenship requirements if they are victims of domestic violence. Enacted Connecticut legislation provides eligibility for General Assistance, temporary family assistance, Medicaid and home-care services for victims of domestic violence, regardless of citizenship status. New Jersey's Work First New Jersey Program will be available to qualified aliens who may have been battered or subjected to extreme cruelty.

States have the option to provide or deny Medicaid to qualified aliens residing in the U.S. before August 22, 1996. New arrivals are barred for their first five years in the country. Refugees and other humanitarian arrivals are exempt from the Medicaid bar for seven years. Veterans are exempt. States may provide or deny state-funded programs to current residents and newly-arriving immigrants. State- and local-funded programs may deem for new immigrants when the newly-enforceable affidavits of support are in effect. The law permits immunizations and testing and treatment for communicable disease, but prohibits the use of Medicaid funds for such purposes. Emergency medical assistance must be provided to both qualified and not qualified aliens. The 1997 balanced budget law restored Medicaid for SSI-eligible immigrants.

The Health Care Financing Administration (HCFA) of HHS has informed states that if they intend to deny Medicaid to qualified aliens in the U.S. prior to August 22, 1996, they must file a state plan amendment. According to HCFA, two states have filed such amendments: Louisiana and Wyoming. West Virginia had initially filed an amendment, but later decided to provide medical assistance to qualified aliens. Minnesota has enacted legislation barring undocumented and non immigrants from medical care other than emergency services, but exempts children, Cuban-Haitian entrants, and aliens who are aged, blind or disabled.

Medical Assistance for Post-Enactment Immigrants. Nebraska allows qualified immigrants to receive medical assistance, regardless of their date of entry, though deeming applies. Minnesota will provide Medicaid benefits to legal post-enactment immigrants who have sponsors and affidavits of support. Washington law will continue Medicaid to post-enactment immigrant families if the parents or legal guardians have resided in the state for at least 12 months. Maryland will provide medical care and other health services for legal immigrant children and pregnant women arriving after August 22, 1996. Rhode Island plans to provide Medicaid coverage for children and prenatal, delivery, and postpartum care for non citizen women regardless of their date of entry into the U.S. Connecticut permits immigrants arriving after August 22, 1996 and determined eligible for Medicaid before July 1, 1997 to receive state-funded benefits until July 1, 1999. Those not determined eligible before July 1, 1997 may receive assistance after six months' residency in Connecticut, until July 1, 1999. Victims of domestic violence and those with mental retardation may receive benefits. Virginia will cover immigrant children under age 19 through state-funded programs. In New York, newly arriving immigrants and PRUCOLs are eligible for safety net and medical services necessary for treatment of an emergency medical condition. The California legislature authorized continuance of prenatal care for unauthorized immigrants, but the Governor vetoed the language; proposed regulations would end the program in December.

Elderly and Long-Term Care. Virginia will continue to serve immigrants receiving Medicaid and residing in long-term care facilities or home- and community-based waiver programs at state expense. A Connecticut law provides home-care services for qualified aliens. In New York, "unqualified" immigrants residing in nursing homes as of August 4, 1997 may retain medical assistance while they are in the medical facility. California will continue Medi-Cal for those losing SSI benefits, as medically needy beneficiaries.

The welfare law made most legal immigrants ineligible for food stamps until they become citizens or earn 40 quarters of work. New arrivals are ineligible for five years (with the exception of refugees, other humanitarian categories, and veterans). The federal FY97 supplemental appropriations bill, enacted June 12, 1997, granted states the option to purchase food stamps from USDA for those immigrants made ineligible by the welfare law. States pay the value of the benefit and the cost of printing, shipping, and redeeming coupons.

To date, eleven states have chosen to provide state-funded food assistance to some or all legal immigrants who will lose federal food stamp eligibility due to the welfare reform law, either by purchasing federal food stamps or developing state food benefits: California, Florida, Maryland, Massachusetts, Minnesota , Nebraska, New Jersey, New York, Rhode Island, Texas, and Washington. Many states also appropriated additional funds for emergency food assistance.

Most states are providing food assistance either at a lower benefit level to current residents of the state or to selected groups of immigrants, such as children and the elderly. Washington, with a state history of supporting food programs, appropriated $65 million to purchase federal food stamps for all legal immigrants made ineligible by federal law at the federal benefit level. Florida will provide about $12 million in food stamps for immigrants 65 and older who were residents as of February 1, 1997. California allocated $35.6 million to replace food stamps for some 40,000 children and elderly immigrants who were residing in the U.S. as of August 22, 1996. Maryland plans to spend $2.15 million on state-run food stamp benefits for legal immigrant children. New York permits counties and New York City to provide food assistance for individuals under 18 or over 65 years of age, resident as of August 22, 1996, who apply for naturalization within 30 days. Nebraska will provide state funded benefits to approximately 2,240 immigrants at the federal level. Rhode Island will provide food stamps to immigrants resident as of August 22, 1996. The Governor of New Jersey approved $15 million for legal immigrant children, elderly and disabled, who were resident as of August 22, 1996. Minnesota is providing "Minnesota grown" coupons at 35 percent of the federal benefit level, for those residing in Minnesota as of July 1, 1997; recipients must work towards citizenship. Massachusetts appropriated $5 million for food stamps to legal immigrants, with benefits expected to be between $15 and $24 per person per month. Benefits will eventually be provided via electronic benefit transfer. The Governor of Texas has announced a plan to provide up to $18 million to approximately 28,000 aged and disabled immigrants. The average benefit will be $53 per month, and distributed via the state's electronic benefit transfer system.

Although a number of states have taken significant steps to fill the gap in nutrition assistance for immigrants, many immigrants remain in vulnerable positions after the cuts of the federal welfare reform law. State legislatures are unable to completely fill the gap created by federal cuts, and many immigrant groups are yet to be covered.

In the wake of welfare reform, many believed that naturalization would be the answer for those immigrants losing federal benefits. To this end, several states have considered naturalization and citizenship assistance programs. In New Jersey, the state has allocated approximately $2 million which is being matched by $2 million in private funds for naturalization outreach and programs. Roughly $200,000 of these resources are likely to be targeted toward TANF recipients who lose Food Stamps. Florida has also appropriated $2 million for naturalization efforts. In California, $5 million was appropriated by the legislature for citizenship and naturalization preparation services, but line-item vetoed by the Governor. In other states, such as Nebraska and Washington, legislation mandates that state welfare agencies make every effort to refer and assist immigrants receiving public assistance understand and attempt the naturalization process but does not allocate new resources. Some states, including Florida, Minnesota, and Connecticut, will extend benefits on a temporary basis to immigrants who are pursuing citizenship.

In general, states have demonstrated an interest in filling in some of the gaps in immigrant services produced by the 1996 federal welfare reform bill. The Balanced Budget Act's restoration of SSI benefits removes the most significant cost-shift of the welfare reform law but does not fully address the array of services immigrants may need. States face many additional benefit and implementation decisions regarding immigrants. The most costly decision revolves around replacing lost federal food stamps. Other options include funding emergency assistance programs, and reliance on private charity. States that established contingency funds this year for elderly and disabled immigrants at risk of losing SSI must now determine how to allocate those funds now that SSI has largely been restored. States will also continue reviewing ways to support citizenship programs, particularly for long-term residents with poor English skills or other barriers to naturalization.

In the meantime, states and localities continue to question the federal shift of responsibility for legal immigrants and refugees. No state is able to completely replace the lost federal safety net. The recently issued National Research Council report confirmed that while immigrants do provide a net national benefit, the federal government reaps the income, while states and localities provide the lions' share of benefits that new immigrants need.

 Sources and References

• Immigrant Policy News ... State LegisLine, Immigrant Policy Project at NCSL.
• "Summary of Selected Elements of States Plans for Temporary Assistance for Needy Families," National Governor's Association Center for Best Practices, July 15, 1997.
• "Potential Legal Challenges to Immigrant Restrictions on Welfare," W-Memo, American Public Welfare Association.

 Contacts and Referrals

Center for Best Practices
National Governors' Association
400 North Capitol Street, NW
Suite 267
Washington, D.C. 20001
tel: 202-624-5300
fax: 202-624-5313

National Immigration Law Center
1815 H Street, NW
Suite 501
Washington, D.C. 20006
tel: 202-776-0470
fax: 202-776-0474

American Public Welfare Association
810 First Street, N.E.
Suite 500
Washington, D.C. 20002-4267
tel: 202-682-0100
fax: 202-289-6555

 "Welfare Reform and Immigrants" is published by the Immigrant Policy Project of the State and Local Coalition on Immigration. Members of the State and Local Coalition are: the National Governors' Association, the National Conference of State Legislatures, the United States Conference of Mayors, the National League of Cities, the National Association of Counties, and the American Public Welfare Association. The Project is funded by the Andrew W. Mellon Foundation. This issue brief series is supported by the Ford Foundation. The Project is located in the Washington, D.C. office of the National Conference of State Legislatures.

Staff
Editor: Ann Morse
Writers: Jeremy D. Meadows
Lorraine Claassen