The federal government cannot command a state or municipality to do something. See, e.g., New York v. United States and Printz v. United States.
Undocumented workers pay into the unemployment trust fund through payroll taxes -- just like everyone else. However, they are not eligible for UI benefits.
Sections 1137(a)(1) and 1137(b) of the Social Security Act of 1935 specify that in order to qualify for certain Federal UI Administrative Grants, states must comply with certain administrative procedures. One of these stipulations is that states create a process to certify citizen papers.
In the past 20 years Massachusetts has given a 12-billion-dollar tax break to big business.
In the past 20 years Massachusetts has collected and given the federal government 3.1 billion in FUTA.
In the past 20 years Massachusetts has received 1.8-billion-dollar in administrative grants.
In the past 20 years Massachusetts has received 3.4-billion-dollar in extended and emergency unemployment benefits.
Massachusetts can afford to forgo the administrative grants. If Massachusetts forgoes the administrative grants, we can ignore the statue that we must check immigration status for UI qualification of benefits.
Furthermore, this is an example of wealth transfer from people lacking human rights to big business profit margins.