Cheats should never prosper. The Trump administration heeds that ethos and has stopped illegal immigrants from profiting off kickbacks drawn from four major refundable tax credit programs.
The initiative was announced Wednesday by Treasury Secretary Scott Bessent and is destined to benefit taxpayers by an estimated $3 billion.
The NY Post first reported the Treasury Department and IRS unveiled new rules “to tighten the requirements for the adoption, child, American opportunity, and earned income tax credits so that only U.S. citizens, U.S. nationals, and qualified aliens can get them.”
“Under President Trump, the days of illegal aliens collecting taxpayer-funded benefits are over. The federal law is clear, and Treasury is enforcing it,” Bessent said in a statement.
He went further by adding:
American taxpayers should not be forced to foot the bill for benefits going to those who are barred by law from receiving them. These proposed regulations end the abuse, protect the integrity of the tax system, and put Americans first.
Those four tax credits are refundable, which means people with a larger credit than the taxes they owe get a refund, as was made clear.
“Refundable tax credits, like the Earned Income Tax Credit (EITC), were enacted to help low-to-middle income American families and workers receive critical financial support,” IRS Chief Executive Officer Frank J. Bisignano added by way of further explanation.
“Today’s proposed regulations ensure that federally funded benefits are reserved for eligible taxpayers and protect the integrity of every taxpayer dollar.”
Nearly one million people would be ineligible for the “refunded portion of the affected refundable individual income tax credits” due to the rule change, the Trump administration has estimated, per the NY Post report.
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