Hundreds of city and county government agencies in Georgia could lose access to millions of dollars in state loans and grants for failing to comply with the state's illegal immigration crackdown.

About 570 agencies face this possibility. 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.

The state Audits and Accounts Department this month sent a list of agencies to the Community Affairs Department. A letter sent by state auditor Greg Griffin says those not in compliance could be cut off from certain state funding until they file their reports with state auditors.

Tags: illegal immigration crackdown, penalties, state Audits and Accounts Department, Community Affairs Department, state auditor Greg Griffin