DHS Subpoenas California Over Alleged Federal Funds Misuse for Undocumented Immigrants

The Department of Homeland Security (DHS) has escalated its scrutiny of California’s financial practices concerning undocumented immigrants, issuing subpoenas to the state government seeking detailed records related to the Cash Assistance Program for Immigrants (CAPI). The move underscores the Trump administration’s continued focus on curbing illegal immigration and preventing the allocation of federal funds to those residing in the country unlawfully.

The subpoenas, issued by the Homeland Security Investigations (HSI) office in Los Angeles, specifically target CAPI, a state program designed to provide monthly cash benefits to aged, blind, and disabled non-citizens who are ineligible for federal Supplemental Security Income (SSI). While the program’s website outlines its purpose as assisting vulnerable individuals who cannot access federal assistance due to their immigration status, the White House alleges that CAPI provides benefits to undocumented immigrants who are not entitled to social security benefits.

DHS Secretary Kristi Noem issued a strongly worded statement criticizing California’s policies, accusing state politicians of prioritizing undocumented immigrants over citizens. "Radical left politicians in California prioritize illegal aliens over our own citizens, including by giving illegal aliens access to cash benefits," Noem stated. "The Trump Administration is working together to identify abuse and exploitation of public benefits and make sure those in this country illegally are not receiving federal benefits or other financial incentives to stay illegally."

Noem’s statement included a direct message to undocumented immigrants: "If you are an illegal immigrant, you should leave now. The gravy train is over." She also indicated that the subpoena targeting Los Angeles County is only the beginning of a broader investigation into the state’s practices.

The HSI subpoenas demand a comprehensive array of records related to CAPI applicants dating back to 2021. These include the names and dates of birth of applicants, copies of their applications, detailed information regarding their immigration status, and any other relevant documents pertaining to the program’s administration. The scope of the subpoena reflects the DHS’s intent to thoroughly investigate the eligibility criteria and disbursement practices of CAPI to determine if federal funds are being misused.

California Governor Gavin Newsom’s office has not yet issued a public response to the DHS subpoenas. The state is now faced with the challenge of compiling and providing the requested records, which could potentially reveal sensitive information about individuals enrolled in CAPI.

The DHS investigation comes on the heels of a separate report that raised concerns about California’s alleged funneling of billions of federal taxpayer dollars into initiatives benefiting undocumented immigrants. The Economic Policy Innovation Center (EPIC) published a study alleging a complex "money laundering scheme" involving California’s Medicaid provider taxes and federal reimbursements.

According to EPIC’s report, California is leveraging its Medicaid program to obtain an estimated $19 billion in federal funds between April 2023 and December 2026 without any corresponding state contribution. The report asserts that the state achieves this by colluding with insurance companies that cover Medicaid beneficiaries. EPIC alleges that these funds are then used to expand the Medicaid program to cover undocumented immigrants and provide long-term care for wealthy individuals.

"The state of California, colluding with insurance companies who cover Medicaid beneficiaries, has created one of the most outrageous ones yet, a money laundering scheme that results in California obtaining more than $19 billion in federal money without any state contribution over the period from April 2023 through December 2026," EPIC’s report stated.

The EPIC report claims that this influx of federal funds is being used to fund healthcare initiatives for undocumented immigrants and long-term care services for wealthy individuals, effectively diverting federal resources for purposes that were not originally intended.

A spokesperson for California’s Department of Healthcare Services has refuted the EPIC report’s findings, dismissing them as "misleading." The department directed the public to a link on its website for "accurate information" on the issue. The dispute highlights the ongoing debate over the appropriate allocation of resources to address the needs of both legal residents and undocumented immigrants.

The escalating tension between the federal government and California underscores the deep divisions over immigration policy and the role of sanctuary cities. The Trump administration has consistently targeted sanctuary cities, accusing them of obstructing federal immigration enforcement efforts and providing safe havens for undocumented immigrants.

The DHS subpoenas and the EPIC report represent a multi-pronged attack on California’s policies related to undocumented immigrants. The federal government is challenging the state’s financial practices and its efforts to provide support services to those residing in the country unlawfully.

The outcome of the DHS investigation and the ongoing debate over California’s use of federal funds could have significant implications for the state’s budget and its ability to provide services to its residents, including undocumented immigrants. The legal and political battles surrounding these issues are likely to continue as the Trump administration intensifies its efforts to enforce immigration laws and reduce the flow of federal resources to sanctuary cities.