The government just banned Social Security payments for illegal migrants and other ineligible recipients. Backed by a Presidential memorandum signed by President Donald J. Trump, this remarkable change marks one of the boldest efforts to date to eradicate fraud, waste, and abuse in Social Security programs.
The policy title “Preventing Illegal Aliens from Receiving Social Security Act Benefits” advises all federal agencies, including the SSA, to take aggressive action when vetting individuals who apply for taxpayer-funded benefits and ensure that only those who qualify under federal law are admitted into the programs.
What does this Mean?
The new policy blocks illegal aliens from receiving benefits from programs under the Social Security Act. Besides retirement benefits, illegal aliens will also not have access to:
- Disability Insurance (DI)
- Supplemental Security Income (SSI)
- Unemployment insurance
- Medicare and Medicaid
- Temporary Assistance for Needy Families (TANF)
According to the White House, this bold initiative will remove monetary incentives for illegal aliens coming to the United States and ensure that benefits are only sent to lawful and eligible recipients.
Bold Actions the Government is Taking
The directives by President Trump have laid out bold actions that will impact millions of benefits and deny thousands access to payments they have been receiving illegally. Here are the key actions the government is taking:
· Thorough Fraud Investigations
The SSA will expand its fraud prosecutor program to at least 50 U.S. Attorney’s Offices. These offices will work closely with the Department of Justice to prosecute benefit fraud, benefit fraud and misuse of Social Security Numbers.
· Investigate Mismatched Records for 100+ Year-Olds
There have been claims recently of massive fraud in the SSA involving millions of +100-year-olds in their system receiving benefits, yet they are not alive. To tackle this, the SSA Inspector General is being ordered to investigate suspicious earnings being sent to individuals aged 100 or older whose names or SSNs don’t match.
· Return of Civil Monetary Penalties
The SSA is considering reintroducing its dormant civil monetary penalty program that allows fines to be levied on individuals found guilty of fraudulent activity.
· Cutting Off Grantees Who Fail to Verify Benefit Eligibility
Federal grantees, states, or localities that fail to verify benefit eligibility or continue to issue payments to deceased or ineligible recipients may face strict punishment, including the termination of federal funds.
· New Medicare & Medicaid Enforcement
The policy also entails a plan to establish a Medicare and Medicaid fraud prosecution effort in 15 additional U.S. Attorney’s Offices. These offices will target the misuse of health-related benefits by illegal immigrants.
The Numbers Behind the Decision
According to the Trump Administration, illegal immigration has put a fiscal burden on the government, and here are the figures the government is citing;
- 2 million illegal immigrants were assigned SSNs in FY 2024 under the Biden administration.
- Over 20 million illegal aliens and their children spend $182 billion of federal money annually in the form of support, according to the Federation for American Immigration Reform (FAIR).
- Approximately 1 million illegal aliens are estimated to be using stolen or fraudulent SSNs.
- According to FAIR, there is a net fiscal burden of approximately $150.7 billion even after accounting for taxes paid by some illegal immigrants.
Statement From the White House
The White House stated that Social Security and taxpayer resources should not be used to encourage illegal immigration.
What the New Policy Means for American Taxpayers
The directive will not affect U.S. citizens or legal residents who receive benefits legally. However, any citizen or legal resident who can’t verify their legal status will have their payments paused or terminated as the SSA enhances its review process.
The SSA urges all beneficiaries to ensure they provide accurate information and complete all verification processes, including verifying their identity, immigration status, and being vigilant to avoid the misuse of their SSNs.