The purpose of this executive order is to enforce federal law prohibiting illegal aliens from obtaining taxpayer funded benefits. It directs the head of each executive department or agency of the federal government to identify all federally funded programs administered by the agency that currently permit illegal aliens to obtain cash or noncash public benefits, take the steps to stop those benefits, ensure that federal payments to states and localities do not facilitate subsidization or promotion of illegal immigration, and enhance eligibility verification systems to ensure that taxpayer funded benefits exclude ineligible aliens. The order also directs the director of the Office of Management and Budget to identify all other sources of federal funding for illegal aliens, recommend agency actions to prevent the same, and to refer any improper receipt or use of federal benefits to the Department of Justice and the Department of Homeland Security.

On April 24, 2025, a federal district court enjoined enforcement of this executive order to the extent it withholds funds from the plaintiffs which are in 16 cities and counties in California, Washington, Minnesota and New Mexico. On August 22, 2025, the court granted a second preliminary injunction that applies to an additional 34 counties and cities around the country.