A new audit has uncovered that more than $22.6 billion in federal funds were spent on grants benefiting illegal immigrants, providing them with financial aid for home loans, business startups, and credit-building programs. The money was distributed by the Department of Health and Human Services (HHS) through its Office of Refugee Resettlement (ORR), which saw a sharp increase in spending under the Biden administration.
Between 2020 and 2024, ORR distributed funds to nonprofit organizations that offered a variety of financial benefits to illegal immigrants. This included business loans of up to $15,000, credit repair loans of up to $1,500, and savings plans that matched contributions toward major purchases such as homes and vehicles. In fiscal year 2023 alone, ORR allocated more than $10 billion in grants, a dramatic increase compared to previous years.
The timing of this spending coincided with an unprecedented surge in illegal border crossings. U.S. Customs and Border Protection reported 2.4 million apprehensions at the southern border during the same period, raising concerns that taxpayer-funded benefits were drawing more migrants into the country.
Much of the funding—$12.4 billion—went toward programs for unaccompanied minors. ORR’s handling of these children came under fire after it was revealed that 32,000 minors placed with sponsors were unaccounted for. Reports indicated that many of these placements lacked proper oversight, with some children ending up in dangerous situations due to the agency’s failure to conduct thorough background checks.
Watchdog organization OpenTheBooks has also raised concerns about potential conflicts of interest within ORR. The audit noted that Robin Dunn Marcos, a former ORR official, had previously worked for nonprofit groups that later received large sums of ORR grant money. While officials claimed she recused herself from decisions involving those organizations, OpenTheBooks has filed requests for further records to investigate whether favoritism played a role in the distribution of funds.
Beyond ORR, federal spending on benefits for illegal immigrants has sparked additional controversy. FEMA recently faced scrutiny after allocating $80 million to house migrants in New York City hotels. The Trump administration intervened to recover the funds, signaling a broader effort to rein in spending on programs benefiting illegal immigrants. As investigations continue, further details may surface regarding the extent of taxpayer money used for these initiatives.
