US President Donald Trump signed an executive order aimed at identifying and eliminating federal funds being used for undocumented migrants, the White House said.

The order “directs Federal departments and agencies to identify all federally funded programs currently providing financial benefits to illegal aliens and take corrective action,” according to a White House fact sheet issued on Wednesday.

“It ensures that Federal funds to states and localities will not be used to support ‘sanctuary’ policies or assist illegal immigration,” the document said.

It also “mandates improvements in eligibility verification to prevent benefits from going to individuals unlawfully present in the United States.”

The order is to ensure that “taxpayer resources are not used to incentivize or support illegal immigration,” it added.

The order is the latest in a string of actions on immigration since Trump took office last month.

The New York Times reported that undocumented immigrants are largely not eligible for federal benefits, with only some exceptions allowed for emergency situations. (AFP)