The United States Department of the Treasury has announced a forthcoming regulation that will bar undocumented immigrants and other non-qualified foreigners from accessing several refundable tax credits. These include the Earned Income Tax Credit (EITC), the Additional Child Tax Credit, the American Opportunity Tax Credit, and the Saver's Credit.
This move, revealed by the head of the government entity, marks a significant shift in immigration policy following new directives from President Donald Trump, who has mandated the removal of federal benefits for non-citizens.
In a statement shared via social media, the Treasury clarified that the proposal aims to "make clear that the refundable portions of certain income tax benefits will no longer be available to illegal aliens," in line with the president's instructions.
The administration claims this decision is intended to reserve tax credits exclusively for American citizens, amidst an unprecedented tightening of immigration policies.
The announcement aligns with Trump's Thanksgiving message, where he criticized previous administrations' immigration policies for allowing "53 million foreigners" into the country, many of whom — according to him — receive social assistance.
The president described this situation as a burden on "patriotic citizens" and vowed to "eliminate all federal benefits and subsidies for non-citizens," in addition to deporting those he deems a "public charge."
Trump asserted, "An immigrant earning $30,000 with a green card receives approximately $50,000 in annual benefits for their family," in a lengthy message that also accused immigration of "dividing" and "destroying" the country.
His publication served as a prelude to the Treasury's announcement and was accompanied by new pledges of "reverse migration," a process aimed at drastically reducing the number of migrants in U.S. territory.
The political offensive intensified following an attack in Washington D.C., where an Afghan national shot two National Guard members, resulting in the death of a soldier.
In the aftermath, the government confirmed the immediate suspension of all asylum decisions, citing the need to strengthen verification and security processes for foreigners.
"The safety of the American people always comes first," stated USCIS.
With the Treasury's new proposal, hundreds of thousands of immigrant families may lose access to credits that have traditionally helped offset low incomes and family expenses.
The administration has not specified how many migrants will be affected, but analysts predict a significant impact on low-income households, including many with irregular immigration status who rely on these credits to balance their finances.
Meanwhile, immigrant advocacy organizations warn that these measures could increase economic marginalization, create greater social insecurity, and push more families into poverty.
Trump, however, has made it clear that his goal is to restrict benefits to the maximum for those who are not citizens.
The coming weeks will be crucial in determining the scope of the Treasury's regulation, but it is evident that the country is entering a new phase of immigration crackdown, driven by the White House and reinforced by administrative measures directly affecting millions of individuals.
Impact of Treasury's New Rules on Immigrant Communities
What tax credits are being restricted under the new Treasury regulation?
The regulation restricts access to several refundable tax credits, including the Earned Income Tax Credit (EITC), Additional Child Tax Credit, American Opportunity Tax Credit, and Saver's Credit.
Who will be affected by the new Treasury regulation?
The regulation primarily affects undocumented immigrants and other non-qualified foreigners, potentially impacting hundreds of thousands of low-income households that rely on these credits.
How has the Trump administration justified these changes?
The administration argues that the changes are necessary to reserve tax credits for American citizens and to reduce the perceived burden on the U.S. economic system caused by non-citizens receiving federal benefits.