The U.S. Department of Housing and Urban Development (HUD) announced that its updated interpretation of immigration verification requirements for housing and disaster relief grant programs under the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (“PRWORA”) is scheduled for publication in the Federal Register on November 26, 2025. HUD’s announcement is available here. HUD also noted it intends to link its forthcoming verification guidance with upcoming guidance from the Department of Homeland Security.

HUD’s guidance explains that the following programs are subject to PRWORA’s eligibility and immigration verification provisions, which limit benefits to U.S. citizens and “qualified aliens”:

• Community Planning and Development Programs and Grants:
  • Emergency Solutions Grants
  • Continuum of Care (CoC)
• Programs with State and Local Grantees:
  • HOME
  • HOME Investment Partnerships – ARPA
  • National Housing Trust Fund
  • CDBG
  • CDBG-DR
  • HOPWA (Formula) – services to people living with HIV-AIDS
  • ESG
  • Pathways to Removing Obstacles to Housing (PRO Housing)
  • Preservation and Reinvestment Initiative for Community Enhancement (PRICE)
• Grants to Nonprofit organizations:
  • CoC
  • Congressional earmarks
  • HOPWA (Competitive grants)
  • PRO Housing
  • PRICE
  • Self-Help Homeownership Opportunity Program (SHOP)

HUD reiterated that immigration status verification requirements under PRWORA apply through all levels of a funding chain – from pass-through entity grantees to their subrecipients. Although PRWORA exempts nonprofit organizations from verifying the immigration status of program beneficiaries, HUD indicated it will issue verification guidelines for circumstances in which States or local governments (which are not exempt) pass through funds to nongovernmental organizations, including nonprofit, charitable organizations.

Feldesman LLP will continue to monitor and assess HUD’s evolving reinterpretation of PRWORA verification requirements in housing and development grants.  If you have any questions, please contact Phillip Escoriaza.

Stay current on key federal grants updates by joining Feldesman’s Monthly Briefings for Federal Grantees: Key Updates and Developments webinar. The next session will take place on December 16, 2025 at 1 p.m. ET.