Recently, the Center for Immigration Studies (CIS) reviewed the Census Bureau figures for four major welfare programs and reported that immigrant welfare usage has increased since 1996, when legislation was passed to curtail their usage. The CIS is a think tank that supports curtailing immigration to the United States. Section 212(a)(4) of the Immigration and Nationality Act makes inadmissible any person who is likely to become a public charge. This is one of the oldest parts of the United States immigration statutory scheme. The four major programs examined were Temporary Assistance for Needy Families (TANF), Supplementary Security Income (SSI), food stamps and Medicaid. In 2001, immigrant-headed households accounted for 18 percent of all households on welfare, compared with 14 percent in 1996. 

In 1996, Congress passed the legislation to deny immigrants’ access to various welfare programs. Some states have decided to cover some restricted immigrants with their own funds. In every major category except Medicaid, the number of immigrants on welfare has dropped since 1996. The study shows that Medicaid is the most common program used by immigrants. Michael Fix, a researcher who specializes in immigration at the Urban Institute in Washington, explained that while the number of cash benefits has been reduced by half, states aggressively sought to connect the working poor and their children with heath coverage. He added that more immigrants are likely to receive Medicare during an outreach effort because immigrants are disproportionately represented among the working poor. Medicaid is the most expensive program offered to low-income residents.

The CIS reports states that the decline in TANF and food stamp use has not resulted in a significant savings for taxpayers because it has been almost entirely offset by increases in the costs of providing Medicaid to immigrant households. They believe that the only way to significantly reduce immigrant welfare use in the future is to admit fewer unskilled immigrants, because it is impossible to exclude immigrants and their children from the welfare system once they have been allowed into the country. In 2001, 23 percent of immigrant-headed households used at least one major welfare program, compared to 15 percent of native households. 

Their report shows that the usage of welfare is not explained by immigrants’ unwillingness to work, but, rather, because the modern American market has limited opportunities for a large number of immigrants having little education. Native-born welfare recipients are among the most employable welfare to work candidates because they speak English. Jon Blazer, with Community Legal Services in Philadelphia, said that when the native-born leave the welfare list, immigrants represent an increased proportion of whose is left. In 2001, almost 80 percent of immigrant households using welfare had at least one person working. 

In 2001, 2.4 million of the 3 million immigrant-headed households using welfare were legal residents. Illegal immigrant-led residences were able to receive welfare because of their U.S. born children’s eligibility. Some immigrant advocate groups say that the studies do not take into account the amount of state and federal taxes legal and illegal immigrants pay, as well as the their contribution to revenue from spending.