The Impact of President Trump's Executive Order on Immigration and Federal Benefits in the CNMI
A New Era of Immigration Enforcement
On February 19, 2025, President Donald Trump signed an executive order titled "Ending Taxpayer Subsidization of Open Borders." This directive aims to prevent undocumented immigrants from receiving taxpayer-funded benefits, reinforcing long-standing federal laws that restrict eligibility for public assistance programs. The order mandates that federal agencies identify programs providing benefits to undocumented individuals and take corrective measures to ensure compliance with federal law.
The executive order has significant implications for the Commonwealth of the Northern Mariana Islands (CNMI), a U.S. territory already grappling with economic challenges and a complex immigration system. As the CNMI navigates these changes, questions arise about the long-term social, economic, and legal consequences for residents, businesses, and foreign workers who have played a crucial role in the territory's workforce.
Legal Foundations of the Executive Order
The executive order is rooted in the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996, signed into law by President Bill Clinton. PRWORA established strict eligibility guidelines for federal public benefits, barring most undocumented immigrants from receiving taxpayer-funded assistance.
Under 8 U.S.C. 1641, federal benefits are generally restricted to "qualified aliens," which include:
Lawful permanent residents (LPRs)
Asylees and refugees
Aliens granted parole for at least one year
Aliens whose deportation is withheld
Cuban and Haitian entrants
PRWORA also imposed a five-year waiting period for most qualified aliens before they could access public benefits, with exceptions for refugees, asylees, and Cuban and Haitian entrants. However, under the Biden administration, executive discretion led to an expansion of benefits for undocumented immigrants through broad use of parole authority and Temporary Protected Status (TPS)—a practice that the Trump administration now seeks to curtail.
How the Biden Administration Expanded Benefits for Undocumented Immigrants
Over the past four years, the Biden administration used executive authority to extend eligibility for taxpayer-funded benefits to undocumented immigrants through:
Expanding Parole Authority: By widely granting parole, the administration allowed undocumented individuals to be classified as "lawfully present," making them eligible for federal benefits.
Broad Use of Temporary Protected Status (TPS): TPS was originally intended for individuals fleeing specific crises, but its scope was significantly broadened to provide work authorization and access to benefits for a larger number of people.
These policies contributed to an increased demand on federal and local social programs, raising concerns about long-term fiscal sustainability, especially in U.S. territories like the CNMI, where social services are already strained.
Key Provisions of the Executive Order
The new executive order seeks to reverse these trends by directing federal agencies to:
Identify federally funded programs providing benefits to undocumented immigrants and ensure compliance with federal law.
Prohibit federal funds from supporting illegal immigration or sanctuary policies at the state and local levels.
Enhance eligibility verification systems to prevent undocumented individuals from improperly accessing taxpayer-funded benefits.
Require the Office of Management and Budget (OMB) and the Department of Government Efficiency (DOGE) to review federal spending on undocumented immigrants and propose further policy actions.
Mandate agencies to report improper use of federal funds to the Department of Justice (DOJ) and the Department of Homeland Security (DHS) for enforcement.
The Financial Impact of Illegal Immigration on U.S. Taxpayers
A report by the Federation for American Immigration Reform (FAIR) estimated that in 2023, illegal immigration cost American taxpayers $182 billion annually, an increase of nearly $50 billion from 2017. These costs stem from:
Providing public education, healthcare, and social services to over 15.5 million undocumented immigrants and 5.4 million citizen children of undocumented immigrants.
An estimated burden of $9,000 per undocumented immigrant and over $1,000 per American taxpayer per year.
Given the CNMI’s already fragile economy and heavy reliance on federal funding, any reduction in financial aid due to noncompliance with immigration laws could further destabilize the territory’s fiscal situation.
Implications for the CNMI
The CNMI has long faced immigration-related challenges due to its reliance on foreign labor. The new executive order could have profound effects on:
1. Social Services
The 2010 U.S. Census found that 34% of CNMI residents were uninsured, compared to 15% in the mainland U.S.
32% of the CNMI population relied on Medicaid, twice the rate of the mainland U.S.
Many foreign workers are ineligible for Medicare and Medicaid, meaning any reductions in federal benefits will primarily impact U.S. citizens and legal residents who rely on these services.
2. Employment and Workforce Impact
The CNMI has a history of relying on foreign labor to sustain its economy, particularly in tourism and construction.
Stricter immigration enforcement may lead to workforce shortages, as businesses struggle to replace foreign labor with local workers.
Unemployment among local workers may increase due to the economic ripple effects of losing lower-wage foreign labor.
3. Potential Deportations and Population Shifts
The new executive order signals a crackdown on immigration-related benefits in the CNMI.
Undocumented immigrants may face increased deportations, potentially shrinking the CNMI’s labor force.
Legal foreign workers may encounter stricter oversight, making it harder to maintain employment.
Birthright Citizenship Debate and Future Legal Challenges
One of the underlying issues of immigration policy in the CNMI is birthright citizenship. Many foreign workers in the CNMI have children who, under current U.S. law, may qualify for citizenship if born on U.S. soil. However, some legal experts argue that birthright citizenship should be reassessed in territories like the CNMI, where immigration policies differ from the mainland. The executive order does not directly address this issue, but it could prompt future legal challenges that may reach the Supreme Court.
A Balanced Approach Moving Forward
While the executive order aims to reinforce immigration laws and reduce government waste, it raises concerns about economic and humanitarian impacts. A balanced approach should include:
Ensuring that legal immigrants and U.S. citizens in the CNMI receive priority access to benefits.
Providing clear guidelines to employers and local authorities on compliance with federal law.
Strengthening workforce development programs to reduce reliance on foreign labor.
Ultimately, the CNMI’s long-term economic stability depends on a fair and lawful immigration policy that prioritizes citizens and legal residents while maintaining compliance with federal mandates. The latest executive order lays the groundwork for stricter immigration enforcement, but its full impact on the CNMI remains to be seen.
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