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The Department of Homeland Security has issued subpoenas to California’s government regarding potential misallocation of federal funds in the Cash Assistance Program for Immigrants. This investigation, prompted by claims of improper aid distribution to illegal immigrants, has raised concerns among state officials and legal experts. DHS Secretary Kristi Noem criticized California’s political leaders for prioritizing undocumented immigrants over U.S. citizens, while California’s Department of Social Services defended the program’s funding structure. The implications of this inquiry may significantly impact immigrant assistance programs in the state.

California – The Department of Homeland Security (DHS) has issued subpoenas to California’s government regarding alleged misallocation of federal funds through the state’s Cash Assistance Program for Immigrants (CAPI). The inquiry seeks to determine whether federal aid has been improperly distributed to illegal immigrants, a move that has drawn significant attention and criticism from state officials and legal experts alike.

The subpoenas, filed by the Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) office in Los Angeles, target CAPI operations extending back to 2021. This program is specifically designed to provide financial assistance to individuals who are aged, blind, or disabled non-citizens who do not qualify for federal Supplemental Security Income (SSI).

DHS Secretary Kristi Noem has publicly condemned the actions of California’s political leadership, suggesting they have prioritized undocumented immigrants at the expense of U.S. citizens. She indicated that this investigation could represent the beginning of extensive federal scrutiny aimed at such programs nationwide.

The subpoenas request sensitive personal data from CAPI applicants, which includes names, birth dates, immigration status, and related application documents. California’s Department of Social Services, however, states that CAPI is entirely funded by the state, asserting that the program does not typically provide benefits to undocumented individuals. Nevertheless, concerns have been raised about the implications of data sharing under the current investigation.

In 2023, Governor Gavin Newsom vetoed proposed legislation intended to broaden the CAPI program to include undocumented immigrants. Despite this, a study produced by the Economic Policy Innovation Center (EPIC) estimated that California has directed billions in federal taxpayer money into programs benefitting illegal immigrants, potentially constituting improper reimbursement practices from the federal government.

According to EPIC, California has implemented a “money laundering scheme,” which they claim resulted in the state accruing over $19 billion in federal funds without state contributions from April 2023 to December 2026. This has intensified the scrutiny from federal agencies, specifically under the Trump administration’s broader efforts to audit and investigate federal assistance programs for unauthorized immigrants.

Currently, CAPI serves approximately 9,700 individuals, who receive an average monthly benefit of about $1,077. The program is essential for many elderly, blind, or disabled individuals who meet eligibility requirements, providing critical support for basic living expenses.

Critics of the DHS subpoenas fear these actions could instigate a chilling effect, dissuading immigrants from applying for or accepting state benefits out of concern for potential deportation or breaches of their privacy. Legal experts warn that the broad nature of the requests could infringe upon the legal protections of applicants, leading to unintended consequences for the communities they are intended to serve.

Opponents argue that the subpoenas are an attempt by the Trump administration to exert control over state and local decisions regarding the allocation of funds for immigrant assistance programs. This investigation aligns with a presidential memorandum issued by Trump, focused on curtailing unauthorized immigrants’ access to Social Security benefits and other forms of financial aid.

As the investigation unfolds, the intersection of federal oversight and state-run assistance programs continues to raise complex questions about immigration policy, funding allocation, and the rights of immigrants receiving state support. The outcome of this inquiry will likely have significant implications for California’s future handling of immigrant assistance and the policies governing such programs.

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