In a sharp rebuke to the administration’s expansive view of welfare eligibility, U.S. District Judge Mary McElroy on September 28 vacated a 2025 rule that would have forced states to verify immigration status for participants in federally funded programs ranging from Head Start preschools to community health centers and adult-education classes. The court found the government failed to follow notice-and-comment procedures required by the Administrative Procedure Act. Twenty-one state attorneys general—led by Wisconsin’s Josh Kaul—argued the rule would burden frontline providers and deter eligible immigrants and even U.S. citizens lacking paperwork. Judge McElroy agreed, saying the agencies “short-circuited” public input and strayed beyond the 1996 welfare law they relied on. For employers that rely on workforce-development grants or Head Start partnerships, the decision averts an immediate compliance headache: staff will not need to collect I-94s or green cards from every enrollee. However, the court left the door open for the administration to re-issue a rule if it properly engages stakeholders—meaning HR and mobility teams should stay alert for a possible re-proposal. The ruling also highlights the judiciary’s ongoing role in policing executive attempts to link immigration enforcement with unrelated federal programs. Similar legal challenges have delayed other initiatives, such as third-country deportations and expanded public-charge definitions. Businesses should track litigation, as program eligibility rules affect employee benefits, dependent care and community-outreach commitments. Advocates hailed the verdict as protecting access to essential services, while administration officials criticised it as shielding “illegal aliens” at taxpayer expense. An appeal is likely, but for now program administrators may revert to pre-2025 documentation practices.
Source: Wisconsin Law Journal
