(Reuters) - As many U.S. cities and states arrest illegal immigrants in raids and toughen laws against them, a Connecticut city is offering to validate them under a controversial, first-in-the-nation ID card program.

Starting Tuesday, New Haven will offer illegal immigrants municipal identification cards that allow access to city services such as libraries and a chance to open bank accounts.

Supporters say the cards will improve public safety and give undocumented workers protections now afforded legal residents. Critics contend it will unleash a flood of illegal immigration, straining services and wasting taxpayer money.

New Haven officials overwhelmingly approved the program last month in a 25 to 1 vote.

Backers and detractors alike say the program appears to fill a vacuum after Congress failed to act on immigration reform, leaving many towns and cities to struggle with how to deal with a growing undocumented population.

Kica Matos, a leader of local Latino advocacy group Junta for Progressive Action, said undocumented workers are often targeted by thieves and robbed because they carry cash, a result of not being able to open a bank account.

"Part of the reason they can't open bank accounts is because they don't have forms of identification that were valid," she said.

She said two banks had already agreed to accept the new city card, which will be offered to all New Haven residents, as legitimate identification sufficient for opening an account.

Matos estimates 3,000 to 5,000 illegal immigrants live in the city of 124,000 people, many from Mexico, Ecuador and Guatemala.

Protests as U.S. city gives illegal immigrants IDs
By Lucy Nalpathanchil

NEW HAVEN, Connecticut (Reuters) - New Haven, Connecticut, on Tuesday became the first U.S. city to issue identification cards to illegal immigrants, as opponents of the controversial cards booed the mayor and its backers cheered.

About 250 people gathered at the city hall as New Haven started issuing the cards that grant access to services such as libraries and parks, and give illegal immigrants a chance to open bank accounts.

Supporters say the ID cards, which are offered to all New Haven's 124,000 residents, will improve public safety and give protections to its estimated 10,000 to 15,000 undocumented workers. Critics say they will invite illegal immigration, strain services and waste taxpayer money.

Shouting matches erupted as the two sides argued over the legality of the program, which comes as immigration reform is stalled in the U.S. Congress, leaving many cities to struggle with how to deal with a growing undocumented population.