Utah's nuclear option on immigration: no banking, no jobs, no homes, no sanctuary

Rep. Trevor Lee, R-Layton, isn't satisfied punishing undocumented immigrants. He wants to punish the governments that won't help him do it. And he's bringing a sledgehammer.

Fresh off advancing a bill to strip unauthorized immigrants of public benefits, the Republican lawmaker has dropped HB571—a sweeping, maximalist crackdown that touches nearly every corner of Utah law. It would outlaw “sanctuary” policies, force local jails to assist federal immigration enforcement, narrow first-time homebuyer aid, slap employers with stiffer penalties and new E-Verify rules, police international money transfers, limit bank access for people without proper ID, require English-only CDL exams, and curb the state’s liability in cases involving undocumented adults.

Crackdown on “sanctuary cities”

If a state or local government in Utah adopts a "sanctuary" immigration policy—anything that limits cooperation with federal immigration enforcement—HB571 orders the state Attorney General to sue and requires courts to permanently block the policy. Officials responsible for enacting it could be fined up to $5,000 and would be barred from using public funds to defend themselves in court. In some cases, they could be impeached or removed from office.

Utah doesn’t have any formal sanctuary cities, but Salt Lake City and a handful of other municipalities have at various times adopted more limited approaches to cooperation with federal immigration agencies. HB571 appears tailor-made to ensure that can never happen again—and that anyone who tries pays personally for the attempt.

Also under the bill, sheriffs who run county jails would be required to hand over, upon federal request, a complete list of all prisoners and their immigration status.

In short: Utah government at every level is expected to act as an arm of federal immigration enforcement.

Restrictions on homebuying

The bill narrows Utah’s first-time homebuyer assistance program to people who are lawfully present in the United States.

The provision appears to have its genesis in claims that undocumented immigrants are snapping up homes, driving up prices, and locking citizens out of the market. Those claims have been amplified by Vice President JD Vance and echoed by Lee on social media.

It’s a compelling narrative. It’s also wrong.

Undocumented immigrants are overwhelmingly renters, not buyers. They are largely ineligible for federally backed mortgages through FHA, Fannie Mae, or Freddie Mac. They’re more likely to double up with extended family than form new households, which means they generate lower per-capita housing demand than U.S.-born households, according to University of Colorado Denver economist Chloe East. “JD Vance is incorrect in his claim," East said flatly. "While undocumented immigrants may play a small role in increasing housing prices in some areas, the majority of the reason that we're seeing increases in housing prices is other factors separate from undocumented immigration."

The United States has roughly 4.5 million fewer homes than new families need, and one in four renters spends over half their income on housing. Utah's affordability crisis is a product of decades of underbuilding, restrictive zoning, and a construction labor shortage—the last of which would not be helped by policies like this one.

Employers and E-Verify

HB571 makes it illegal for any person to knowingly hire or employ an unauthorized immigrant, with steep, escalating penalties. A first violation brings a one-year business license suspension and fines up to $10,000. Repeat violations can mean multi-year suspensions, permanent license revocation, and fines up to $500,000 if an unauthorized worker's actions cause a death. Knowingly employing 50 or more unauthorized workers is a third-degree felony.

The section on workers’ compensation is particularly strict. If an employer knowingly hires an unauthorized worker and that person is injured on the job, the employer becomes personally and fully liable for all medical costs, cannot shift those costs to insurance, and faces fines up to $50,000 per violation. While this sounds like accountability for employers, it erases any protections for undocumented workers.

The bill also requires employers to verify work authorization status through E-Verify before filing any workers' compensation claim for any employee legal or not. Miss that step, and your insurer doesn't have to pay. The employer covers everything out of pocket.

Banking and money transfers

Licensed money transmitters—think Western Union, not banks—would be barred from sending money overseas unless they first verify the sender isn't an "unauthorized alien," using specific approved forms of ID. Records must be kept for five years. If a business sends money without completing verification, it faces a penalty equal to 25% of the amount transferred.

Put plainly, if a person wanted to wire money to family in Mexico or Guatemala, the business processing that transfer must confirm your immigration status first or face a fine worth a quarter of everything you sent. The Department of Financial Institutions would run random quarterly audits to make sure businesses comply. Remittances are often the primary financial lifeline for families across Latin America.

Lee’s proposal is much harsher than another bill currently under consideration that targets international remittances. HB141 from Rep. Stephanie Gricius, R-Eagle Mountain, imposes a 2% tax on international money transfers unless the customer shows a valid ID.

Additionally, Utah banks and credit unions would be barred from accepting Utah's "driving privilege" cards that are issued specifically to people without lawful status to open accounts, access loans, rent safe deposit boxes, or use other banking services.

Other impacts

The bill also requires all commercial driver's license instruction and testing to be conducted in English only, with no interpreters, translators, or language accommodations permitted except where federal law requires otherwise. And it restricts the state's own liability, barring the state from settling or paying claims involving an adult who is in the country unlawfully or who refuses to provide proof of lawful citizenship.

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