Treasury’s Bessent says department working to cut federal tax benefits for illegal immigrants Scott Bessent says agency working to preserve benefits for US citizens only, not unauthorized immigrants Treasury Secretary Scott Bessent said Friday his department is working to cut off federal benefits to illegal immigrants at the direction of President Donald Trump.
Bessent wrote in a post on X that “we are working to cut off federal benefits to illegal aliens and preserve them for U.S. Citizens.”
He said the Treasury “announced that it will issue proposed regulations clarifying that the refunded portions of certain individual income tax benefits are no longer available to illegal and other non-qualified aliens, covering the Earned Income Tax Credit, the Additional Child Tax Credit, the American Opportunity Tax Credit, and the Saver’s Match Credit.”
Bessent’s post alluded to an announcement made by the Treasury Department last week that it will propose new regulations clarifying that refundable portions of those tax credits are “federal public benefits” that illegal immigrants and nonqualified aliens aren’t entitled to receive.
Bessent and the Treasury are developing regulations to prevent tax benefits from going to unauthorized immigrants. (Eric Lee/Bloomberg via Getty Images)
Bessent added in a follow-up post, “If you’re here illegally, there’s no place for you in our financial system.
“Illegal aliens that use our financial institutions to move their illicitly obtained funds is exploitation, and it will end.”
The move follows a recent legal opinion by the Justice Department’s Office of Legal Counsel, which adopted that interpretation.
Treasury’s announcement indicated it plans for its final regulations to apply beginning in tax year 2026.
Bessent’s announcement comes as part of a broader immigration crackdown by the Trump administration. (Joshua Lott/The Washington Post)
“Treasury’s Office of Tax Policy and the Internal Revenue Service have worked tirelessly to advance this initiative and ensure its successful implementation,” Bessent said in the announcement. “Their diligence and professionalism reflect this Administration’s determination to uphold the integrity of our tax system.
“We will continue to ensure that taxpayer resources are directed only to those who are entitled under the law.”
The IRS will assist with cracking down on illicit financial payments. (Kayla Bartkowski/Getty Images)
The Treasury’s Financial Crimes Enforcement Network (FinCEN) announced Friday that it is issuing an alert to financial institutions to prevent illegal aliens from exploiting the U.S. financial system by moving illicitly obtained funds.
The announcement notes that money services businesses (MSBs) are generally required to file a suspicious activity report for a transaction that involves at least $2,000 and that the MSBs know, suspect or have reason to suspect is relevant to a possible legal or regulatory violation.
Those transactions include the cross-border transfer of funds derived from unlawful employment or that were otherwise illicitly obtained in the U.S.
Bessent posted after Trump said Thursday that his administration will “permanently pause” migration from all “Third World Countries” after the death of a National Guard member in an attack near the White House.
The comments mark a further escalation of migration measures Trump has ordered since the shooting on Wednesday that investigators say was carried out by an Afghan national who entered the U.S. in 2021 under a resettlement program.
Trump did not identify any countries by name or explain what he meant by third-world countries or “permanently pause.” He said the plan would include cases approved under former President Joe Biden’s administration.
Reuters contributed to this report.
