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States, cities and private industries are moving in different directions to deal with unauthorized migrants. States such as Arizona and cities such as Hazleton, Pennsylvania have taken steps to make life in the US more difficult for unauthorized foreigners, while Bank of America and other financial institutions have developed programs to issue credit and debit cards to those without Social Security numbers. Some day labor centers issue debit cards to workers that are credited with their pay, and provide duplicate cards to relatives abroad who can then withdraw money at ATMs.

Hazleton, Pennsylvania's Illegal Immigration Relief Act, adopted after a May 10, 2006 killing for which four unauthorized foreigners await trial, was challenged by civil liberties groups who said it would lead to discrimination against Latinos; a decision is expected by May 2007. Hazleton's population rose from about 20,000 to 30,000 in five years as a result of immigration.

A Missouri state judge in March 2007 ruled that two ordinances adopted in 2006 in the St. Louis suburb of Valley Park that are nearly identical to those in Hazleton violated state law. Mission Viejo, California approved an ordinance in March 2007 that requires businesses with city contracts to participate in the DHS Basic Pilot program, an internet-based system that verifies the legal status of new hires. DHS says about 15,000 US employers participate in Basic Pilot, which is voluntary; more states and cities are expected to require their contractors to participate in Basic Pilot.

Arizona Attorney General Terry Goddard has been trying to halt the flow of funds to smugglers with "damming warrants." Since September 21, 2006, Arizona has blocked wire transfers made via Western Union of $500 or more from 26 states with a significant population of illegal migrants to a group of Western Union outlets in the northern Mexican state of Sonora. Western Union sued to block the warrants, arguing that the money being wired did not involve Arizona and thus could not contribute to state crimes.

On January 9, 2007, an Arizona judge agreed with Western Union and quashed the warrant. Some of those whose transfers were seized have sued to get them back.

In FY06, some 510,000 illegal entrants were apprehended in Arizona, half of the total for the 2,000mile-long southern section. Many of those who illegally cross the border stay in Phoenix-area safe houses before being moved around the US by their smugglers.

The Real ID Act of 2005 requires states to confirm by May 2008 that the documents presented by applicants for driver's licenses, such as birth certificates and passports, are genuine. States will also have to check a database to make sure that applicants do not already have a license in another state and that they have not been banned from driving elsewhere. By 2013, there should be only "Real" driver's licenses and ID cards, which will be required to board planes and enter federal buildings.

Many states say that Real ID is an unfunded federal mandate; they estimate the cost of re-issuing driver's licenses to 245 million Americans at $11 billion. Privacy advocates say that the new licenses may make ID theft easier. Measures were pending in at least 21 states to oppose or question the Real ID law when the Bush administration said it would extend until December 31, 2009 the deadline for states to issue Real ID licenses.

Louisiana in 2002 enacted a state law that makes it a felony for unauthorized foreigners to drive vehicles in the state. Over 100,000 Hispanics moved to New Orleans to clean up after Katrina, and some accuse state and local police of harassing them by stopping them while driving. The constitutionality of the Louisiana law is expected to be determined by the state's Supreme Court later in 2007. After protests, the New Orleans Police Department issued a directive prohibiting officers from arresting people they suspect are in the country illegally after a traffic stop.

In Illinois, the state House in March 2007 approved a bill on a 60-54 vote to create a special driver's permit for undocumented residents. Seven states - Hawaii, Maine, Maryland, Michigan, New Mexico, Oregon and Washington - grant driver's licenses without demanding proof that people are in the country legally. Utah issues "driver privilege cards" instead of regular licenses for undocumented residents.

Spencer S. Hsu and Darryl Fears, "As Bush's ID Plan Was Delayed, Coalition Formed Against It," Washington Post, February 25, 2007. John Pomfret, "Fight Against Immigrant Smuggling Follows Money Trail," Washington Post, January 26, 2007.