Trion and Menlo are just two of hundreds of city and county government agencies in Georgia that could lose access to millions of dollars in loans and grants for failing to comply with the state's illegal immigration crackdown.

Last year's law targeting illegal immigration requires employers with two or more employees to file annual reports certifying they and their contractors are using a federal program called E-Verify to check the eligibility of new hires, or that they have no contracts to reports.

Trion and Menlo reportedly are non-compliant. Other non-compliant agencies in the area include the cities of Trenton, Lookout Mountain; Development authorities in Trenton and Dade County, Dalton and Whitfield County; The LaFayette Development Authority and Downtown Development Authority; The Hospital authority of Walker County; Dade and Catoosa Counties; The Dalton-Whitfield Hospital Authority; and the Housing Authority in Ringgold.

The Department of Community Affairs has been sent a list of non-compliant agencies and certain state funding could be cut until reports are filed.