California’s Shadow Welfare System for Illegal Immigrants

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We visited four public-services offices in Southern California, each of which admitted that illegal aliens can enroll in public-welfare programs or receive benefits on their children’s behalf. In total, California taxpayers spent at least $11 billion subsidizing illegal immigrants in the last fiscal year. The state’s shadow welfare system, it seems, shows no signs of slowing down.

Local officials were remarkably transparent. In Glendale, we spoke to a welfare officer about California’s Cash Assistance Program for Immigrants (CAPI), a state-funded alternative to Supplemental Security Income that provides monthly cash assistance to low-income noncitizens who are elderly or disabled.

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In Los Angeles, we heard more of the same. We asked another welfare officer about the benefits available to illegal immigrants and their children. While some state programs are closed to illegals, we learned, they are open to those aliens’ U.S.-born children.

“If you were born here and the child was born here, you get money for two,” the officer said of CalWORKs, the state’s version of the federal Temporary Assistance for Needy Families program. “Because she is not and the child is, she only gets money for the child, and not for her.”

These benefits add up. In California, illegal immigrants can qualify for CAPI, public health insurance, and various tax credits. Their children qualify for others, including CalWORKs and, as in other states, Section 8 rental subsidies. All told, a family of five in California with two illegal-alien parents, two U.S.-born children, and one illegal-alien grandparent can receive public services worth more than $100,000 per year.

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Federal law generally prohibits states from using federal dollars to serve illegal aliens. To dodge those restrictions, California created parallel state- and locally funded programs that allowed the state to extend benefits to illegal immigrants. Perhaps as a result, more than one in four California residents today is foreign-born.

Medicaid is a good example. Federal law prohibits states from using federal dollars to provide wraparound coverage to illegal immigrants. So, California used a state-funding “bucket” within its Medi-Cal program to extend “full-scope” coverage to illegal aliens. The expansions enrolled some 1.7 million people, costing the state an estimated $10 billion annually—more than twice what the state legislative analyst originally projected.

California also uses a distinct legal category that enables certain migrants to qualify for state programs. The state deems certain aliens to be “permanently residing under color of law”—living in California with the “knowledge and permission” of immigration enforcement—and allows them to use this designation to enroll in Medi-Cal, CAPI, and other government programs. In practice, because aged or disabled individuals are typically not deported, this means elderly foreign retirees can arrive in California and receive extensive benefits.

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