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Illegal aliens are generally prohibited from qualifying for food stamps.¹ But for decades, illegal aliens have received benefits thanks to loopholes exploited by states. Recent federal legislation made several changes to ensure that food stamps are not being funneled to illegal aliens. But more can be done to ensure that households with illegal aliens do not qualify for food stamps at higher incomes and assets, or receive more in benefits, than American families with the same financial circumstances.

Food stamp eligibility and benefits are calculated by household. And while illegal aliens are already not permitted to receive food stamp benefits, they might contribute income to a household receiving food stamps.

The default rule is that all income of illegal aliens is considered when determining food stamp eligibility and benefits in mixed-status households.² But states have the option to exclude some income and financial resources of illegal alien household members when calculating eligibility and benefit amounts.^3-4 This creates a double standard: Illegal alien households could qualify for food stamps at higher income levels and receive larger benefit amounts than citizen-only households in identical financial circumstances, because a portion of the mixed-status household’s actual income is simply ignored. In this way, mixed-status households are treated more favorably than an American family on food stamps. To close this loophole, states should count all household income regardless of immigration status and prosecute individuals who conceal this information.

Illegal aliens are generally prohibited from qualifying for food stamps. But for decades, illegal aliens have received food stamps thanks to state exploitation of loopholes.

The food stamp program was created to help improve nutrition among low-income Americans.^5-6 Eligibility for food stamps is limited to U.S. citizens, with a few exceptions.⁷ Yet food stamp eligibility and benefit amounts are calculated by household, and illegal aliens often live in households with eligible members. While income from illegal aliens must be counted when calculating household benefits, states can prorate that income, meaning they are not required to count all of it.^8-9

The One Big Beautiful Bill Act made many illegal aliens newly ineligible for food stamps.¹⁰ Following the law, only citizens, lawful permanent residents, Cuban and Haitian entrants, and lawful residents under the Compact of Free Association are potentially eligible for food stamps.¹¹ Though their income must be counted when calculating food stamp benefits, states can omit some of that income from the equation by prorating income that illegal aliens contribute to a household with eligible food stamp members. As a result, mixed-status households are able to exclude income from welfare applications to inflate their benefit eligibility.

States can exclude some income of illegal aliens from welfare applications, inflating their benefit eligibility.

The One Big Beautiful Bill Act narrowed the categories of illegal aliens eligible for food stamps.¹² In fiscal year 2024, there were 893,000 mixed-status food stamp households with citizen children receiving benefits on behalf of illegal alien parents.¹³ Another 1.4 percent of food stamp households, 314,000 households, have citizen children and noncitizen, eligible noncitizen parents.¹⁴

The new law underscored the federal default that the income and financial resources of ineligible individuals should be considered when determining food stamp eligibility and benefit allotments.^15-16 This matters because monthly allotments scale down as income rises. Yet states retain the option to use a loophole that gives food stamp households with illegal aliens an advantage over all-citizen households. States can subtract a proportional slice of an illegal alien’s income before counting it, essentially omitting it from the calculation. The result is that states exclude income in mixed-status households from welfare applications to inflate their benefit eligibility. In households made up entirely of U.S. citizens, no income is excluded.

Prorating income also disincentivizes work for mixed-status households, since only a fraction of earnings count against eligibility. Moreover, households with illegal aliens may qualify for food stamps despite having total incomes and assets above the federal limits, because only a portion of that income is considered.

read more:

https://thefga.org/research/rigged-by-design-how-food-stamp-loophole-favors-households-with-illegal-aliens/

Full paper:

Rigged-by-Design-How-a-Food-Stamp-Loophole-Favors-Households-with-Illegal-Aliens-paper-10-1-26-1.pdf