A federal spending audit uncovered that more than $22.6 billion in taxpayer funds were used to provide illegal immigrants with financial assistance, including home and car loans, startup funding for businesses, and credit-building programs. The money, managed by the Department of Health and Human Services (HHS) through the Office of Refugee Resettlement (ORR), was distributed between 2020 and 2024.
The audit, conducted by OpenTheBooks, showed a dramatic increase in ORR funding under the Biden administration. In 2023 alone, the agency distributed over $10 billion in grants, more than tripling the amount awarded in 2020. This spending occurred alongside a record surge in illegal border crossings, with 2.4 million apprehensions reported by Customs and Border Protection in the same period.
Nonprofits that received ORR grants used up to $1.7 billion to provide various financial benefits to illegal immigrants. Programs included small-business loans of up to $15,000, housing and auto purchase assistance, and credit repair loans. Other taxpayer-funded services covered emergency housing, legal assistance, and Medicaid benefits.
More than half of the allocated funds — $12.4 billion — went toward unaccompanied minors in federal custody. Despite the funding, ORR faced scrutiny over reports that 32,000 children placed with sponsors were unaccounted for. Whistleblowers warned that some sponsors were unvetted, raising concerns over the safety of minors in the program.
Some nonprofit groups that received ORR grants were tied to former agency officials. Robin Dunn Marcos, who oversaw ORR’s unaccompanied minor program, had previously worked at organizations that later secured large government contracts. While she recused herself from decisions involving those groups, OpenTheBooks has requested further records to investigate whether the funding process was influenced by personal connections.
Beyond ORR, other agencies have directed taxpayer funds toward similar initiatives. FEMA recently came under fire for spending $80 million to house illegal immigrants in New York City hotels before the Trump administration moved to reclaim those funds. As scrutiny of federal spending continues, more details could emerge about additional programs benefiting illegal immigrants.
