Trump is trying to exclude immigrants from many federally funded programs. Here’s what it means for Wisconsin.

A group of federal agencies announced in July that at least 15 federally funded health, education and social service programs would exclude undocumented immigrants and some who are living in the country legally. 

Responding to President Donald Trump’s February executive order to “identify all federally funded programs currently providing financial benefits to illegal aliens and take corrective action,” the departments of Education, Health and Human Services, Justice and Labor listed programs that provide literacy classes, career education, medical and mental health care, substance abuse treatment, free preschool and more. 

In Wisconsin alone, the state Department of Justice estimates the new federal restrictions “put at risk more than $43 million each year in substance abuse and community mental health block grants that fund services in all 72 counties, 11 Tribal nations, and approximately 50 nonprofit organizations.” 

Wisconsin Watch contacted more than a dozen Wisconsin organizations, government agencies and national experts to learn about the new policy’s effects. But we found more questions than answers. Most are unsure who is subject to the new rules or how to comply. 

While we were reporting this story, Wisconsin joined 20 other states in a lawsuit challenging the new restrictions. That suit is still pending, but the parties have agreed to a deal that would delay most of the restrictions in those states until September. 

Confusion created by the guidance could have serious consequences, experts say. Some providers might delay or cancel programs unnecessarily out of an abundance of caution, while some immigrants may avoid services for which they remain eligible, such as health care and education.

While much remains unclear, here’s what we know so far. 

Which immigrants would be barred?

A 1996 law already prohibited certain immigrants from receiving 31 “federal public benefits,” including Medicaid, Medicare, Social Security and cash assistance. The Trump administration’s new guidance bars the same immigrants from additional programs, according to the National Immigration Law Center.

Those ineligible include: 

• People with Temporary Protected Status (TPS). 
• People with nonimmigrant visas, such as student visas, work visas and U visas for survivors of serious crimes. 
• People who have pending applications for asylum or a U visa. 
• People granted Deferred Enforced Departure or deferred action. This includes Deferred Action for Childhood Arrivals (DACA) recipients — those who entered the country as children.
• Undocumented immigrants.
• Lawfully present immigrants who don’t fall into categories below. 

People in the following groups would remain eligible:

• Lawful permanent residents (green card holders). 
• Refugees. 
• People who have been granted asylum or withholding of removal. 
• Certain survivors of domestic violence.
• Certain survivors of trafficking. 
• Certain Cuban and Haitian nationals.
• People residing under a Compact of Free Association with Palau, Micronesia and the Marshall Islands.

Why the confusion? 

A range of institutions — including colleges, government agencies and nonprofits — manage the affected programs. Many did not previously check the immigration status of the people they serve; creating a process to do so may add costs and logistical challenges. It could prove especially daunting for organizations like soup kitchens and homeless shelters, which provide urgent services to people without easy access to documents. 

Meanwhile, entities that administer these federal funds include nonprofits and federally funded community health centers, which operate under laws that conflict with the guidance.

Health and Human Services said its settlement with the suing states “will permit the agency to consider, as appropriate, whether to provide additional information” about the restrictions it announced. 

How would the changes affect health care in Wisconsin?

Wisconsin has 16 federally qualified community health centers serving patients at 217 sites. They receive money from Congress to provide primary care to all, regardless of their ability to pay. Nationally, such clinics serve more than 32 million patients, making up 1 in 10 people in the United States and 1 in 5 people in rural America, according to the National Association of Community Health Centers. 

Aside from emergency rooms, they are often the only care options for undocumented immigrants or those with limited English proficiency, said Drishti Pillai, director of immigrant health policy at KFF, a national nonprofit providing information on health issues.

Federal law requiring those clinics to accept “all residents of the area served by the center” contradicts the Trump administration guidance. 

The national association said in a July 10 statement that it’s working with experts and legislators to understand the impact of the new rules and ensure centers “have the information and resources needed” to continue serving their patients. 

Access Community Health Centers, a nonprofit that provides medical, dental and mental health care at five south central Wisconsin clinics, will make “adjustments” if further federal guidance comes, CEO Ken Loving said.

“We don’t have the information we need to understand how this is going to impact us and how we can adapt to help our patients,” he said.

How would the changes affect education in Wisconsin?

The new restrictions target adult education services under the Adult Education and Family Literacy Act and career and technical education services under the Carl D. Perkins Career and Technical Education Act. Community and technical colleges would likely face the brunt of the impact, but just how much is unclear. 

The Wisconsin Technical College System has followed 1997 guidance that said public benefit restrictions did not apply to such educational services, spokesperson Katy Petterson said. She’s not sure how the updated guidance might affect the system, which will “wait to learn the impact of the lawsuit.” 

If community-college-operated programs begin checking immigration status, ineligible immigrants may remain able to take federally funded classes through nonprofits that are subject to different rules. 

The nation’s 1,600 Head Start agencies, which provide free early childhood education and family support services for low-income families, fall under the restrictions announced in the Department of Health and Human Services notice. But the document doesn’t say whether Head Start staff must verify the immigration status of children, parents or both.

“It’s very ambiguous about who this impacts. … If you read the language, it’s 26-plus-ish pages of legal jargon, and it’s shifting,” said Jennie Mauer, executive director of the Wisconsin Head Start Association, which supports the state’s roughly 300 Head Start service sites.

One thing Mauer wants families to know: Children already enrolled in Head Start won’t be forced out. 

“We want to follow the rules, but Head Start is not required to redetermine eligibility,” Mauer said, noting it has never been required to do so in 60 years. She’s been telling the center directors to sit tight, even as worried parents ask questions. 

One entity that won’t start checking immigration status: K-12 schools. The U.S. Supreme Court ruled in 1982 that denying education to undocumented students violated their constitutional rights.

Must nonprofit providers start checking immigration status?

Probably not. The 1996 law restricting public benefits says nonprofit charities are not required to “determine, verify, or otherwise require proof of eligibility of any applicant for such benefits.”

At Literacy Network, a nonprofit offering a variety of free ESL and basic education classes in Madison, staff aren’t planning changes based on the new rule. 

“It could certainly impact many of our students in other areas of their lives and therefore their ability to participate in our programs, but not who we can serve,” spokesperson Margaret Franchino said.

Still, guidance from the Department of Education is vague. It states that the exemption for nonprofits is “narrowly crafted,” and “the Department does not interpret (it) to relieve states or other governmental entities … from the requirements to ensure that all relevant programs are in compliance.”

Ryan Graham is the homeless systems manager at Wisconsin Balance of State Continuum of Care, a nonprofit that supports agencies responding to homelessness across most of the state. 

As his agency discusses updates with partner agencies, it is preparing for an “increased administrative burden on already stretched staff.”

“We don’t yet know whether there will be delays caused by having to check or validate someone’s citizenship status, especially in emergency situations where time is critical,” Graham said. 

When do the new rules take effect?

The notices published in July took effect immediately, though some federal agencies said they would likely not enforce them for about a month. The Trump administration later agreed to pause enforcement until Sept. 3 in the 21 states that sued. 

The Department of Health and Human Services, meanwhile, has voluntarily stayed enforcement of its directive in all states until Sept. 10. 

What is the basis of legal challenges? 

The multistate lawsuit argues the Trump administration failed to follow proper procedures in implementation and that it can’t retroactively change the rules after states accept grants to administer programs. Requirements to check the immigration status of every person served would unreasonably burden program staff and possibly force programs to close, the states argue. 

States “will suffer continued, irreparable harm if forced to dramatically restructure their social safety nets and render them inaccessible to countless of the States’ most vulnerable residents,” the plaintiffs wrote.

The American Civil Liberties Union and Head Start groups nationwide had already sued before the Trump administration published new guidance. That suit argued staffing cuts, funding delays and bans on diversity efforts threatened to destabilize Head Start — a long-standing, congressionally mandated program. A hearing in that suit was held Aug. 5 on a request to temporarily block the Health and Human Services notice. 

What does the Trump administration say? 

The 1996 public benefits ban exempted federal programs that offered services available to all people on the grounds that they were “necessary for the protection of life and safety.” 

Trump calls that exemption too broad. 

“A surge in illegal immigration, enabled by the previous Administration, is siphoning dollars and essential services from American citizens while state and local budgets grow increasingly strained,” the White House said.

Citing studies from congressional committees and groups that seek to severely curtail immigration, the White House argues that allowing broad access to federal resources incentivizes illegal immigration and costs U.S. taxpayers. The recent federal spending package also eliminated access to Medicaid, Medicare and food stamps for some authorized immigrants, including refugees and asylees.

Trump ran for office on a promise to carry out mass deportations, and the bureaucratic moves appear to be a new frontier in that immigration crackdown. Since he took office, the administration has raided stores and workplaces, built new detention centers and attempted to shut down the asylum process at the southern border. It has also urged many immigrants without permanent legal status, including DACA recipients, to self-deport. 

Why does this policy change matter?

Experts worry the confusion about the new rule could have a chilling effect, leading even eligible immigrants to stop using services. 

Pillai of KFF noted that the restrictions on community health centers, alongside congressionally approved changes “that limit health coverage to a smaller group of lawfully present immigrants,” will likely make immigrant families even more reluctant to seek health care and social services. 

The changes “may increase their reliance on emergency room care, which can be more costly in the long term,” she added. 

Graham, the homeless systems manager, believes the Trump change will create “a direct barrier to safe and stable shelter for undocumented individuals and mixed-status families” and qualified immigrants or citizens who “may not have identification or the means to attain identification after fleeing a dangerous situation or crisis.”

It could also prompt administrators of some programs not covered by the rule to start screening participants as a precaution, or shut down programs to avoid screening challenges.

That has happened before. When Trump issued an executive order in January saying the administration would no longer “fund, sponsor, promote, assist, or support” gender-affirming health care for people under 19, some providers stopped offering those services even though state law protected them. 

Likewise, a 2023 KFF study found that in states that institute abortion bans, the majority of health care providers say they worry about accidentally running afoul of the law.

Braden Goetz, who worked for more than 20 years in the U.S. Department of Education and now works as a senior policy adviser at the New America Foundation’s Center on Education and Labor, said it’s unusual for federal guidance to be so sparse and ambiguous. 

“​​Maybe that’s the intention: to confuse people and chill services to people who are not citizens or not legal permanent residents, and scare people,” Goetz said.

This article first appeared on Wisconsin Watch and is republished here under a Creative Commons Attribution-NoDerivatives 4.0 International License.