California’s Immigrant Aid Program Under Federal Investigation Over Alleged Misuse of Benefits

The Department of Homeland Security (DHS) has launched an investigation into the State of California over allegations that public benefits were unlawfully extended to immigrants living in the United States without legal status. At the heart of the inquiry is the California Cash Assistance Program for Immigrants (CAPI), a state-funded initiative designed to support elderly, blind, or disabled immigrants who are not eligible for federal Supplemental Security Income (SSI).

Federal investigators, led by Homeland Security Investigations (HSI) Los Angeles, have issued a subpoena demanding all relevant records from the Los Angeles County Department of Public Social Services, the agency responsible for administering CAPI. The subpoena seeks documentation dating back to January 2021 and includes detailed requests for applicants’ names, dates of birth, immigration status, and proof of SSI ineligibility.

According to DHS officials, the probe is part of a broader effort to ensure that individuals residing in the U.S. unlawfully are not receiving taxpayer-funded benefits. The investigation also seeks to determine whether state-level assistance has indirectly enabled ineligible individuals to access federal funds through the Social Security Administration.

“Only immigrants with lawful status are eligible for CAPI,” said UC Davis Law Professor Kevin R. Johnson in an interview with ABC7. “Applicants must meet very specific criteria, including documentation proving they do not qualify for SSI due to their immigration status but otherwise meet the age or disability requirements.”

The CAPI program has long served as a lifeline for some of California’s most vulnerable non-citizen residents. Created to mirror federal SSI benefits, CAPI is intended to support individuals who were lawfully present in the United States but lost eligibility for SSI due to changes in federal welfare law during the 1990s. While the program is administered by local county agencies, it remains subject to oversight and scrutiny—especially when allegations arise concerning possible misuse or abuse.

Homeland Security Secretary Kristi Noem issued a strong statement regarding the subpoena and the department’s priorities.

“Radical left politicians in California continue to put illegal immigrants ahead of their own citizens—offering cash assistance and incentives that defy federal law,” said Noem. “The Trump Administration is committed to identifying abuse and holding state governments accountable when they enable individuals in the country illegally to receive financial support.”

“If you are in this country illegally, you should return home,” she added. “The gravy train is over. And while this subpoena currently focuses on Los Angeles County, it’s only the beginning.”

The investigation follows a presidential directive signed by Donald Trump on April 15, 2025. The Memorandum on Preventing Illegal Aliens from Obtaining Social Security Act Benefits instructs multiple federal agencies—including DHS, the Departments of Labor and Health and Human Services, the Social Security Administration, and the Department of Justice—to coordinate enforcement efforts against the misuse of federal benefit programs.

The directive emphasizes preventing illegal immigrants from accessing SSI or other forms of federally funded financial support. It also calls for civil and criminal penalties against jurisdictions found to be in violation of Title IV of the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA), which prohibits most undocumented immigrants from receiving federal public benefits.

“There is federal money involved, and the administration wants to ensure it’s being spent in accordance with congressional intent,” Johnson noted. “That’s the legal basis for the federal interest in this case.”

In response to the DHS investigation, Governor Gavin Newsom’s office defended the CAPI program, asserting that it complies with state and federal regulations.

“This program is intended for individuals with lawful immigration status, pending legal protections, or those applying for status—including victims of crime and human trafficking,” said a spokesperson for the governor.

The governor’s office has not indicated whether California will challenge the subpoena but emphasized that any benefits distributed are within legal bounds.

Still, federal authorities maintain that even indirect facilitation of illegal immigrant access to federal benefits could constitute a violation of federal law. Investigators are especially focused on verifying whether any applicants used fraudulent documentation or exploited loopholes in the system to obtain assistance they were not legally entitled to receive.

As the federal investigation continues, officials from both state and federal agencies are preparing for a prolonged legal and political battle over the scope and enforcement of immigration and welfare policies.

The outcome of the inquiry could have broader implications for similar aid programs across the country, especially in states with large immigrant populations. For now, all eyes remain on Los Angeles County, where federal agents are combing through years of records in search of potential violations.