The Immigration Reform and Control Act of 1986 (Simpson-Rodino Act) has many negative consequences for the city of New York (New York). Major provisions that will affect the city include the following: (1) sanctions on employers of illegal aliens; (2) an amnesty program for illegal aliens; (3) a 5-year limitation on newly amnestied aliens' eligibility for federal benefits; and (4) the Systematic Alien Verification for Entitlements (SAVE) program, which requires state and local benefit programs to verify applicants' immigration status. New York City lobbyists were instrumental in determining the amnesty date, reimbursement of state and local cost arising from the amnesty program, and the final version of the SAVE program. Undesirable effects will include the following: (1) the loss of substantial sums of money in unreimbursed services to newly legalized aliens; (2) cost of data collection and documenation by city service agencies to obtain reimbursement for educational and health services from block grants; (3) loss by present employers of illegal aliens, who compromise a significant part of their workforce; and (4) no means of support for illegal workers and their families in the city. Major recommendations include the support and expansion of the amnesty program and services, and simplification of the data collection process required for compliance and reimbursement. The appendices include a calendar of significant dates, and a description of the four methods of legalization in the Immigration Reform and Control Act. (FMW)