Bend, OR — U.S. Labor Secretary Lori Chavez-DeRemer issued a stern warning to the nation’s governors on Friday, cautioning that states allowing undocumented immigrants to access unemployment benefits risk losing critical federal funding.
In a letter sent to all 50 governors, Chavez-DeRemer emphasized that unemployment benefits are reserved strictly for individuals legally authorized to work in the United States. “Unemployment benefits are not a handout for those in our country illegally,” she wrote. “Our nation’s unemployment benefits exist solely for workers who are eligible to receive them.”
The letter signals a renewed effort by the federal government to tighten enforcement around unemployment insurance eligibility and aligns with directives recently issued by former President Donald Trump. Chavez-DeRemer referenced both Trump’s Presidential Memorandum, “Preventing Illegal Aliens from Obtaining Social Security Act Benefits,” and Executive Order 14218, “Ending Taxpayer Subsidization of Open Borders.”
The move also comes amid heightened national debate over immigration enforcement and the financial strain on public benefit programs.
Chavez-DeRemer, a former congresswoman from Oregon, directed state officials to begin using the Department of Homeland Security’s SAVE (Systematic Alien Verification for Entitlements) database to verify the immigration status of unemployment claimants. The system is now available to states at no cost, thanks to a recent expansion authorized by DHS Secretary Kristi Noem, according to the letter.
The Labor Department’s Employment and Training Administration has also issued guidance urging all state unemployment insurance administrators to utilize SAVE for both initial and continued claims involving non-U.S. citizens. States that fail to comply with federal verification requirements could face the loss of their Title III Unemployment Insurance administrative grants — a key source of funding for state unemployment operations.
“I am committed to ensuring that the U.S. Department of Labor enforces the law and will personally work to safeguard Americans’ hard-earned tax dollars,” Chavez-DeRemer stated.
Immigrant advocacy organizations have yet to respond to the directive, but it is expected to face criticism from those who argue it may lead to improper denials of benefits for legal immigrants and create new bureaucratic hurdles.
The letter marks a clear escalation in federal oversight of how states administer unemployment benefits and a deepening of the administration’s broader stance on immigration enforcement.
