Overview
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.
A mixed-status household only needs to earn half the income of a household made up entirely of citizens to have the same benefits. In an all-citizen household, food stamp agencies consider all income. This should be the case for mixed-status households, too.
Instead, mixed-status households with illegal alien members have inflated food stamp benefits. This omission of income abuses taxpayer dollars and rewards households that hide behind immigration loopholes.
States should count the full income and assets of every illegal alien in a household just as they do for citizen-only households.
States must ensure that mixed-status households are not treated more favorably than American citizens by including all income and assets from illegal aliens when determining food stamp eligibility and benefit amounts. States that want to be consistent with how citizen-only households are treated should require counting the full income and assets of all illegal aliens in a given household, not just a pro-rata share. States should require full disclosure of every household member. Moreover, states should also disqualify and prosecute anyone who fraudulently conceals relevant income. The fix is straightforward, and some states are already taking action.
Indiana codified full income and asset counting for illegal alien household members.17 Other states, including Idaho, Iowa, Louisiana, North Carolina, Utah, and Wyoming, have taken similar action to strengthen program integrity in food stamps.18-23 States that close the loophole will protect taxpayers and preserve food stamp resources for those truly eligible.
The Bottom Line: To close the loophole, states should count all household income, regardless of each member’s immigration status, when determining food stamp eligibility and benefits.
As food stamp spending and enrollment have exploded, fraud by design in the program has run rampant. To curb waste, states must fix income-counting schemes.
Households with illegal aliens should not receive more in food stamp benefits than American citizens. Though illegal aliens are not themselves eligible for food stamps, they are often members of households with eligible members. Rather than inflate their income or allow them to qualify at much higher income and asset levels, states must count all income and assets of illegal alien households when considering their household for food stamps.
