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Abstract Over the past three decades, a central new challenge confronting millions of children of immigrants has emerged: growing up in a mixed‐status family in which at least one member lacks legal authorization to live and work in the United States. A body of recent research argues that unauthorized immigrant status is thefundamentaldeterminant of integration for unauthorized immigrants, with intergenerational consequences for their U.S.‐born children. We discuss the immigration and other policies that create the particular social context within which unauthorized immigration status becomes so detrimental for integration. Specifically, we focus on federal and state policies that undermine the very factors thought to protect children and support the integration of new generations of Americans: families and social networks, economic resources and opportunities, and health. We conclude with recommendations for future research.