On July 10, 2025, the U.S. Department of Health and Human Services (HHS) announced a significant policy shift to restore compliance with federal law and ensure that taxpayer-funded program benefits, intended for the American people, are not diverted to subsidize illegal aliens. HHS has formally rescinded a 1998 interpretation of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA), which had extended certain federal public benefits to illegal aliens. This new policy applies PRWORA’s plain-language definition of “Federal public benefit,” reverses outdated exclusions, affirms that programs serving individuals, households, or families are subject to eligibility restrictions, and clarifies that no HHS programs have been formally exempted under PRWORA’s limited exceptions.
The revised list newly includes all programs now classified as “Federal public benefits” under PRWORA:
- Certified Community Behavioral Health Clinics
- Community Mental Health Services Block Grant
- Community Services Block Grant (CSBG)
- Head Start
- Health Center Program
- Health Workforce Programs not otherwise previously covered (including grants, loans, scholarships, payments, and loan repayments)
- Mental Health and Substance Use Disorder Treatment, Prevention, and Recovery Support Services Programs administered by the Substance Abuse and Mental Health Services Administration
- Projects for Assistance in Transition from Homelessness Grant Program
- Substance Use Prevention, Treatment, and Recovery Services Block Grant
- Title IV-E Educational and Training Voucher Program
- Title IV-E Kinship Guardianship Assistance Program
- Title IV-E Prevention Services Program
- Title X Family Planning Program
The above list is not exhaustive. Any additional programs determined to be Federal public benefits will be announced in program specific guidance.