The Justice Department says states could lose billions of dollars of federal funding for low-income residents, unless they report undocumented immigrants living in their communities. In a legal opinion issued Wednesday, the DOJ warns that any state resisting the Trump administration’s mass deportation program could lose funding for TANF, Temporary Assistance for Needy Families, and SSI, the Supplemental Security Income program. The changes are almost certain to draw a legal challenge from Democratic state attorneys general.

This comes as new data show nearly 10 million people — including 2.5 million children — have lost access to health coverage during President Donald Trump’s second term — and that’s before new work requirements and steeper cuts to Medicaid and the Children’s Health Insurance Program fully take effect. Five million fewer people are receiving SNAP food assistance benefits following passage of the 2025 GOP budget reconciliation package known as the One Big Beautiful Bill Act.