As the government shutdown continues amid Democratic demands for taxpayer-funded healthcare for illegal immigrants, President Trump has launched a comprehensive audit of federal programs to ensure that public benefits are reserved for American citizens and lawful residents.
The review spans at least 28 major programs across multiple federal agencies. Housing audits cover the Section 8 Housing Choice Voucher Program and public housing. The Department of Health and Human Services (HHS) is examining 13 programs, including Head Start, Community Health Centers, Medicaid, and the Title X Family Planning Program, along with behavioral health and substance abuse grants. Nutrition and welfare programs such as SNAP (food stamps) and TANF (Temporary Assistance for Needy Families) are also under scrutiny.
The Department of Labor has been directed to verify immigration status within workforce programs such as WIOA, senior and youth job training, and migrant and seasonal worker initiatives. The Department of Education will implement enhanced verification for Pell Grants, student loans, and career and technical education programs. Together, these reviews mark one of the broadest federal efforts in history to ensure taxpayer funds go to eligible Americans.
HUD Secretary Scott Turner has ordered a nationwide audit of public housing authorities, requiring them to confirm the citizenship or legal immigration status of all Section 8 recipients within 30 days of notice. The directive, issued on August 31, 2025, stems from President Trump’s Executive Order 14218, “Ending Taxpayer Subsidization of Open Borders.” Authorities must provide proof of citizenship or eligible immigration status, along with names, addresses, and unit information. Noncompliance could trigger reviews of HUD funding or program eligibility.
Although federal law has prohibited illegal aliens from receiving Section 8 assistance since 1980, Turner said the audit is intended to strengthen enforcement and prevent applicants from leaving citizenship fields blank. He also indicated that new rules may address “mixed-status” households containing both citizens and illegal residents. A similar initiative during Trump’s first term in 2019 was reversed by the Biden administration in 2021.
On July 10, 2025, HHS announced the reversal of a 1998 interpretation of the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA), which had allowed illegal aliens access to certain federal benefits for more than two decades. The updated 2025 policy broadened the definition of “federal public benefits,” adding 13 new programs to the existing 31 already restricted. These include behavioral health, Head Start, mental health and substance use programs, and family planning services.
HHS estimates the policy could free up as much as $374 million annually for American families through expanded access to Head Start. The policy took effect July 14, 2025, though federal courts have since issued injunctions in 23 states and the District of Columbia. Despite the legal challenges, the administration maintains that the policy safeguards approximately $40 billion in benefits for U.S. citizens.
In May 2025, Centers for Medicare & Medicaid Services (CMS) Administrator Dr. Mehmet Oz revealed that a federal audit uncovered more than $1 billion in improper Medicaid payments made on behalf of illegal aliens. Following the discovery, HHS began transferring Medicaid data to the Department of Homeland Security to prevent misuse of federal healthcare funds.
The Department of Labor’s Employment and Training Administration issued new guidance on July 10, 2025, requiring all federally funded workforce programs to verify that participants have valid work authorization before receiving services. Labor Secretary Lori Chavez-DeRemer said the change ensures taxpayer-funded job training is reserved for those legally allowed to work in the U.S., reversing Biden-era guidance.
That same day, the Department of Education rescinded a 1997 directive allowing illegal aliens to access taxpayer-subsidized programs in career, technical, and adult education. Citizenship and immigration verification is now required for all participants, including dual-enrollment and early college students.
Career and technical education programs serve about 11 million students and receive over $1.3 billion in federal funding. The Department of Education has delayed enforcement until at least September 10, 2025, pending ongoing litigation.
The Trump administration has spent months consolidating data across agencies to eliminate waste, fraud, and abuse in federal programs. The Department of Government Efficiency (DOGE), initially led by Elon Musk, has played a key role by merging databases and coordinating with the Departments of Health, Education, and Labor.
Earlier this year, the Department of Homeland Security reached data-sharing agreements with the IRS and HUD to identify noncitizens improperly receiving benefits. These actions follow President Trump’s March 20 executive order granting federal agencies expanded access to state-level program data to ensure compliance.
Through these initiatives, the administration aims to protect taxpayer money and prioritize American citizens in federal benefit programs. While Democrats and left-leaning media outlets have criticized the effort, the White House insists the audit is about fairness, accountability, and upholding the rule of law.