Welfare Reform: Implications of Proposals on Legal Immigrants' Benefits

HEHS-95-58 February 2, 1995
Full Report (PDF, 29 pages)  

Summary

GAO found that the percentage of immigrants receiving public assistance--specifically Supplemental Security Income (SSI) or Aid to Families With Dependent Children (AFDC)--is higher than the percentage of citizens receiving these benefits. Six percent of all immigrants receive benefits compared with 3.4 percent of all citizens. Most immigrant recipients live in four states: California, New York, Florida, and Texas; more than one-half of all immigrant recipients live in California. Between 1983 and 1993, the number of immigrants receiving SSI more than quadrupled, increasing from 151,000 to 683,000. During this period, immigrants grew from about four percent of all SSI recipients to more than 11 percent. As a percentage of all adult AFDC recipients, immigrants grew from about five percent to eight percent. In all, immigrants received an estimated $3.3 billion in SSI benefits and $1.2 billion in AFDC benefits in 1993. Most immigrant recipients are lawful permanent residents or refugees, but other characteristics of immigrants receiving SSI and AFDC vary. For example, the number of immigrants receiving SSI aged benefits--available to those 65 years and older--has increased dramatically. According to the Congressional Budget Office, a welfare reform proposal now before Congress (H.R. 4) would save $9.2 billion from the SSI program and $1 billion from the AFDC program over four years. GAO estimates that 522,000 SSI recipients and 492,000 AFDC recipients would become ineligible for benefits under H.R. 4.

GAO found that: (1) a greater percentage of legal immigrants receive SSI or AFDC benefits than do citizens; (2) immigrants tend to be poorer than citizens and have more small children, more elderly or disabled family members, and more family members with minimal education and skill levels; (3) the number of immigrants receiving SSI benefits more than quadrupled between 1983 and 1993 and these immigrants now comprise over 11 percent of all SSI recipients; (4) legal immigrants received an estimated $1.2 billion in AFDC benefits in 1993; (5) most immigrant recipients are lawful permanent residents or refugees and are 75 years old or older; (6) one welfare reform proposal would save $9.2 billion in SSI benefits and $1 billion in AFDC benefits over 4 years by dropping about 500,000 immigrant recipients from each program; (7) the Administration's proposal would affect fewer immigrants and extend the length of sponsorship and tighten eligibility standards; (8) the two welfare reform proposals could save between $3.3 billion and $21.7 billion over 4 years; and (9) the loss of benefits could cause immigrants to change their immigration, work, and naturalization patterns or to turn to state welfare programs for support.