Latest news with #federalbenefits
New York Times
27-05-2025
- Politics
- New York Times
Republican Crackdown on Aid to Immigrants Would Hit U.S. Citizens
President Trump has vowed to end what he calls the 'waste of hard-earned taxpayer resources' by cutting off federal benefits for undocumented immigrants and ensuring that funding goes to American citizens in need. Administration officials have said they would root out 'illegal aliens' who are living in federally-subsidized housing. The Agriculture Department has ordered states to enhance immigration verification practices used to determine eligibility for food stamps. And House Republicans just passed a tax bill that would limit certain immigrants from accessing Medicaid and Medicare, a popular tax credit for parents, and federal financial aid, among other benefits. The actions amount to an aggressive attempt to curb immigrant families' use of safety net programs. Although Republicans say they want to remove incentives for people to enter the country illegally, unauthorized immigrants generally do not receive federal benefits given efforts to chip away at their eligibility. Immigration experts and advocates for immigrant rights say the changes would instead largely be felt by children who are U.S. citizens but whose parents are undocumented or immigrants who are authorized to live in the United States, such as refugees and people granted asylum. Twelve percent of American children, or about nine million people, are citizens with at least one noncitizen parent. Children with at least one immigrant parent are twice as likely to live in poverty than those with native-born parents, according to a 2022 report by researchers at the Boston University School of Social Work. 'In the name of wanting to take a harsh policy stance against immigrants, in many different ways the reality is that they're going to be punishing citizens and other immigrants that have been eligible in the past,' said Shelby Gonzales, the vice president for immigration policy at the Center on Budget and Policy Priorities, a left-leaning think tank. Some of the most substantial changes would come with the tax bill, a centerpiece of Mr. Trump's economic agenda that House Republicans narrowly passed on Thursday. If approved by the Senate, the package would boost the child tax credit to as much as $2,500, but limit its availability to parents with Social Security numbers. Current law allows children who have Social Security numbers to receive the benefit, even if their parents have only individual taxpayer identification numbers, which are issued to noncitizens for the purpose of paying taxes. The change would make roughly two million children with Social Security numbers no longer eligible for the benefit, according to an estimate from the Joint Committee on Taxation. Some proponents of the change argue that the child tax credit currently allows undocumented immigrants to benefit from taxpayer money, and that such funding should be shut off even if their children are citizens. 'In the real world, the money is going to the unlawful alien parents, and they're not obligated to spend that money on the children,' said George Fishman, a senior legal fellow at the Center for Immigration Studies, a think tank that favors restricting immigration. Others said the potential changes would undermine the well-being of children who are U.S. citizens in immigrant households. Families where someone doesn't have a Social Security number are already ineligible for the earned-income tax credit, which provides a significant boost to low-income households. Research has found that children who receive similar cash benefits go on to have better health, earn more and commit fewer crimes later in life. 'Going forward, they are the adults of this country,' said Dolores Acevedo-Garcia, a professor of social work at Boston University who studies immigrants. 'Do we want to disinvest in them now so that their education and health and everything deteriorates, and then we have to face that in a few years from now?' The tax bill would also tighten eligibility for federal health insurance programs. Immigrants who are authorized to live in the United States but are not legal permanent residents would no longer qualify for Medicare unless they fall under certain exceptions. The package would also bar those immigrants from receiving subsidized health insurance on marketplaces set up by the Affordable Care Act. Those changes could affect refugees, immigrants granted asylumand people with temporary protected status. It would also deny access to marketplace plans entirely for people brought to the United States as children who are currently protected under the Deferred Action for Childhood Arrivals policy. Some of those immigrants have a path to obtaining a green card, but not all of them do, such as foreigners granted immigration parole or temporary protected status. The tax plan would also trim Medicaid expansion funding by 10 percentage points for states that use their own money to cover low-income undocumented immigrants, which could penalize 14 states that provide health coverage to children regardless of immigration status, according to KFF, a health policy research group. States could choose to stop covering undocumented immigrants, and preserve their federal matching funds. Or they could keep that coverage and take the hit to their federal reimbursement, which would mean less money to go around for U.S. citizens who depend on Medicaid. Research has also found that people who don't have health insurance are more likely to rely on emergency rooms for preventable care. Hospitals must provide emergency care regardless of a patient's immigration status, which they can receive reimbursements for through emergency Medicaid. 'So they're going to need to look to other programs, or just cut the funding for undocumented immigrants, which is going to have an impact on everyone in that family, including citizen family members,' said Wendy Cervantes, the director of immigration at the Center for Law and Social Policy. The bill would also end a requirement for states to provide Medicaid benefits to applicants during a grace period in which their immigration or citizenship status is being verified, which could deny coverage to those who don't have easy access to documents like a passport or birth certificate. And the tax bill would cut off federal tuition assistance and food stamps for nearly all immigrants who are not citizens or permanent residents. Alex Nowrasteh, the vice president for economic and social policy studies at the Cato Institute, a libertarian think tank, said he supported efforts to curtail immigrants' access to federal benefits. But he said the changes would not result in major budget savings, given that noncitizens receive just 3.5 percent of all welfare and entitlements. 'The budget deficit cannot be plugged by kicking noncitizens off welfare benefits,' Mr. Nowrasteh said. 'That being said, they should be removed because a dollar saved is a dollar saved, and that's good enough. I'd much rather they kick immigrants off welfare than kick immigrants out of the country.' Although the tax bill is still working its way through Congress, many federal agencies are already trying to restrict undocumented immigrants from accessing programs. In March, the Housing and Urban Development Department said it would partner with the Homeland Security Department to ensure that federal housing programs were not benefiting undocumented immigrants over citizens. The Small Business Administration has barred lending to companies with any amount of investment from people without Social Security numbers, constraining credit for American-born entrepreneurs. Many housing authority directors and housing policy experts expect the Trump administration to propose a rule that would ban families with any undocumented members from subsidized housing, even if their children are U.S. citizens and eligible for the benefit. The administration proposed a similar rule during Mr. Trump's first term but did not put it in place. The housing department found at the time that doing so could displace 55,000 children who were in the country legally, and that more than 108,000 people receiving assistance lived in a household with at least one undocumented member. 'Children in immigrant families, who are often U.S. citizens, would be harmed both by the threat of family separation and the risk that they may become homeless,' said Tanya Broder, a senior counsel at the National Immigration Law Center. Other agencies that run benefit programs have reiterated that undocumented immigrants are not permitted to receive funding. The Labor Department sent a letter to states last month warning that they could lose federal funds if they allowed unauthorized immigrants to receive unemployment benefits. The Social Security Administration also expressed its 'full support' for Mr. Trump's efforts to ensure that undocumented immigrants did not receive Social Security benefits. The Trump administration has also put pressure on Democratic states that aid undocumented immigrants, including starting an investigation into a California program that has provided cash assistance to some undocumented immigrants and revoking waivers to state colleges and universities that use federal money to provide some services to unauthorized immigrants. The effort to target immigrants could create a chilling effect, making people hesitant to enroll for benefits over fears that their family members could be deported if they share their information with the government, said Valerie Lacarte, a senior policy analyst at the Migration Policy Institute. 'Even if you're eligible and you can get those benefits, you're also letting the state or agency know that there's an unauthorized immigrant in your household,' Ms. Lacarte said. 'The rhetoric essentially discourages people from using public benefits.'
Forbes
07-05-2025
- Business
- Forbes
195,000 Student Loan Borrowers Get Notices That Wages And Benefits Are About To Be Seized
NEW YORK, NEW YORK - MARCH 07: United States Secretary of Education Linda McMahon visits "Fox & ... More Friends" at Fox News Channel Studios on March 07, 2025 in New York City. McMahon announced this week that 195,000 defaulted federal student loan borrowers were sent Treasury Offset notices. (Photo by) Getty Images Nearly 200,000 federal student loan borrowers were notified this week that their wages and benefits are about to be seized by the government. The warnings represent the first wave of involuntary collections actions that the Department of Education has initiated against borrowers in default on their federal student loans. 'Starting today, approximately 195,000 defaulted student loan borrowers will begin receiving an official 30-day notice from the U.S. Department of Treasury notifying them that their federal benefits will be subjected to the Treasury Offset Program,' said the Department of Education in a statement on Monday. The action follows a department announcement last month that the government is restarting administrative collections programs against defaulted federal student loan borrowers after a five-year pause. These programs give the federal government vast powers to seize income and payments from people without any court order or lawsuit. 'American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies,' said Secretary of Education Linda McMahon in a statement at the time, blaming the Biden administration for 'misleading' people by offering defaulted federal student loan borrowers extended relief from collections as the Covid-19 pandemic wound down. Here's what student loan borrowers should expect as the federal government ramps up its efforts to seize benefits and wages from people who are in default. 195,000 Defaulted Federal Student Loan Borrowers Will Be Subject To Seizure Of Wages and Benefits The Department of Education's first wave of collections actions is being implemented through the Treasury Offset Program. This program, run by the U.S. Department of Treasury, allows the government to intercept or offset federal income streams before an individual receives it. The government then applies that income to the borrower's defaulted federal student loan balance. 'The Treasury Offset Program (TOP), operated by the Department of the Treasury's Bureau of the Fiscal Service, is a fully-automated, centralized offset program that intercepts federal and state payments to collect delinquent debts owed to federal and state agencies,' says a Treasury Department fact sheet. 'Federal agencies must notify TOP of all nontax debts delinquent more than 120 days. Federal disbursing officials must offset payments to collect such debts.' The Treasury Offset Program allows the government to seize or offset a variety of federal income and benefits, including: Up to 100% of federal tax refunds owed to a student loan borrower; Up to 100% of federal vendor and federal employee travel-related payments; Up to 15% of federal employee salaries and wages; Up to 25% of federal employee retirement benefits; Up to 15% of Social Security and Railroad Retirement benefits; Up to 100% of state payments owed to federal student loan borrowers, if the state enters into a reciprocal agreement with the U.S. Department of Treasury. 'The first monthly benefit checks subject to offset are those scheduled for early June,' said the Department of Education in its announcement this week. That means that borrowers who receive Treasury Offset notices now will have only a few weeks to act if they want to avoid the seizure of their federal wages or benefits. The Treasury Offset Program notices being sent out this week represent just the initial wave of warnings that the government will be sending to defaulted federal student loan borrowers. Millions of additional borrowers are also at risk of having their wages garnished, even if they don't work for the federal government or receive federal benefits. Under federal law, the government can order a private employer to withhold up to 15% of an employee's salary or wages to pay their defaulted federal student loan debt through administrative wage garnishment. 'Later this summer, all 5.3 million defaulted borrowers will receive a notice from Treasury that their earnings will be subject to administrative wage garnishment,' said the Department of Education in its Monday announcement. Some department officials anticipate that given the rising numbers of borrowers falling behind on their student loan payments, more than 10 million borrowers could end up in default by the end of the year. 'More than six million borrowers are set to once again face a range of severe and punitive consequences as the federal government's vast debt collection machine turns back on,' said The Institute for College Access and Success in a blast email last month. 'Another 9 million are late on their payments and at high risk of entering default within the year. Borrowers have fewer resources than ever to navigate their repayment options, and those options are ever shifting. For many borrowers, this is likely to mean default. For those already in default, getting back on track is likely to be even more difficult than ever.' 'The decision to resume the government's collections machine marks the first time in five years that the federal government will penalize Americans who fall behind on their student loan payments,' said the Student Borrower Protection Center in an email in April. 'The announcement also comes as Americans are navigating unprecedented economic uncertainty—struggling to cover the rising costs of everyday goods, dealing with the economic fallout of mass firings of more than 24,000 federal workers all while being unable to access the full suite of affordable repayment options to help better manage their student loans.' What Student Loan Borrowers Should Know About Benefits Offsets And Wage Seizures Importantly, only borrowers in default on their federal student loans are receiving these notices and would be subject to Treasury Offset or private employer wage garnishment. To be in default, a borrower must be behind or past due on their monthly payments by at least 270 days. Those who are in normal repayment, or in a deferment or forbearance status, cannot have their benefits offset or their wages seized. In addition, defaulted federal student loan borrowers must be issued a formal notice to their last known address, and given an opportunity to respond, before the offset or garnishment can begin. 'Notice must explain the debtor's rights and opportunities to dispute the debt, examine and request copies of agency records, request administrative review of the determination of indebtedness, and enter into a compromise or repayment plan acceptable to the agency,' says the Treasury Department fact sheet. Borrowers in default on their federal student loans who receive a Treasury Offset notice or notice of proposed wage withholding have options. They can object to the offset or garnishment and request a hearing based on financial hardship; they can apply for an administrative discharge of their student loan debt if they qualify; they can settle their debt through a compromise; or they can pursue federal student loan default resolution programs such as rehabilitation or Direct loan consolidation, which would then allow them to access federal student loan programs like income-driven repayment and Public Service Loan Forgiveness.
Yahoo
06-05-2025
- Business
- Yahoo
HR cutbacks imperil benefits for former federal workers, their families, Raskin says
Yahoo is using AI to generate takeaways from this article. This means the info may not always match what's in the article. Reporting mistakes helps us improve the experience. Yahoo is using AI to generate takeaways from this article. This means the info may not always match what's in the article. Reporting mistakes helps us improve the experience. Yahoo is using AI to generate takeaways from this article. This means the info may not always match what's in the article. Reporting mistakes helps us improve the experience. Generate Key Takeaways Rep. Jamie Raskin (D-8th) addresses the crowd at a Democratic party rally attended by then-President Joe Biden in Rockville on Aug. 25, 2022. (File photo by Danielle E. Gaines/Maryland Matters) For two weeks, Lisa Lederman called the federal government's Office of Personnel Management practically whenever she had a moment to spare. But the result was always the same, she said: Shortly after she dialed, the line would go dead. For Lederman, a Silver Spring resident whose late husband was a federal worker, the saga began in February, after her checking account was compromised. Closing the bank account meant she stopped receiving her monthly survivor's benefit from the federal government. And her efforts to fix the problem online weren't working. So, she started calling, several times a day. 'My son was in the car with me on the way to school one day, and he's like: 'Who are you calling so early?'' said Lederman, 54. 'I'm calling the office trying to get my money.' But after weeks without success, a dispirited Lederman threw in the towel. Months later, Lederman said she still hasn't received a deposit — or gotten in contact with OPM. 'It's like a ghost,' she said of the office. 'It's like: 'Who's behind the curtain?'' That's a question local lawmakers are trying to answer. On Tuesday, Lederman's congressman, Rep. Jamie Raskin (D-8th) joined with Rep. Gerry Connolly (D-Va.) to send a letter to the acting director of the Office of Personnel Management, arguing that Lederman is not alone. 'Mass firings' of human resources staff, both within federal agencies and at OPM, have exacerbated 'the ongoing crisis of dysfunction throughout the federal government,' read the letter. Forty other members of Congress signed on, including every other Maryland Democrat: Reps. Sarah Elfreth, Steny Hoyer, Glenn Ivey, April McClain Delaney, Kweisi Mfume and Johnny Olszewski Jr. Human resources deficiencies have made matters worse for federal employees recently fired by Elon Musk's Department of Government Efficiency, or federal workers who recently 'ended their careers in public service earlier than planned,' according to the letter. 'At a time when they are manufacturing a crisis in the workforce, they are also disabling the personnel and human resource officers who would be dealing with all of the corresponding problems,' Raskin said in an interview Monday. But in a statement, OPM spokesperson McLaurine Pinover pushed back against the allegations in the letter, and blamed problems on the prior administration. 'This letter is filled with baseless claims in an effort to make headlines. There have been no changes to the constituent services process,' Pinover wrote. 'Unfortunately, the issues with this process predate this administration and OPM is actively working to modernize it to best serve the American people.' But the letter says some former federal workers cannot access the retirement benefits they earned, or are receiving incorrect benefits. Normally, they might contact the human resources office in their former department, but in many cases, those offices have been 'eliminated or significantly downsized.' At OPM, the main human resources agency and personnel policy manager for the federal government, the situation doesn't seem any better, according to the lawmakers' letter. OPM's congressional liaison officers, who worked with staffers on the Hill to address concerns from constituents, 'appear to be on administrative leave,' as well as managers. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX 'Alarmingly, our last remaining liaison contacts at OPM – who as recently as early April reassured our staff that their casework operations were ongoing – are now gone,' states the letter. It's an 'emergency situation,' according to the letter, which calls on Charles Ezell, the acting director of OPM, to halt all firings of OPM staff and HR staff across the federal government and pursue reinstatements. In a statement, Chloe Scott, a spokesperson for Ivey, said that their office was notified on April 12 that 'OPM has made the decision to close their constituent services department. The office now emphasizes the importance of using their web-based portal for inquiries and that their correspondence division will route inquiries as proper.' 'This is very concerning as this change affects the ability to address Member's concerns that are shared on behalf of their constituents and is creating added delays in processing inquiries at this agency,' Scott said. Lederman had been receiving the monthly survivor's payments for herself and her three children since 2013, when her husband, Gordon, died after a battle with cancer. Lederman last served as a national security adviser to Sen. Joe Lieberman of Connecticut, and before that was an aide to Sen. Susan Collins and a staffer for the 9/11 Commission, his wife said. When benefit payments stopped, and Lederman couldn't access OPM's online portal — or contact the agency by phone — she wasn't sure where to turn, until a friend recommended Raskin's office. Now, she said one of the congressman's caseworkers is helping with her case. Raskin said his caseworkers have been facing challenges corresponding with OPM for several weeks, and so he decided to issue a formal letter, in hopes of bringing it to the attention of agency leadership. 'I keep wondering whether these people are aware of the long-term repercussions for the federal government and its ability to recruit people,' Raskin said. 'I hope that this is just a short-term problem and that OPM will get on top of it.' Lederman said she was alarmed to learn that, amid the Trump administration's broader cuts to the federal workforce, HR staffers may have been targeted as well. 'There have to be some reasonable heads that recognize that customer service — and being able to troubleshoot and talk to the constituents and the public — has to be part of staffing,' she said. Lederman said her family has been getting by since the payments stopped several months ago, but they are being more frugal than usual, and losing out on funds that would normally go into savings. 'It's part of my budget. Part of my budget goes into savings and for a rainy day. And I have a kid who's going off to college,' she said. Lederman said she was glad to hear that members of Congress were raising awareness about the HR issues. She hopes that it will help not just her, but other citizens struggling to access benefits, including those who may be disadvantaged by language barriers or technology hurdles. 'It's like they're holding my money hostage,' she said.
