Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Benzinga
Benzinga
Business
Namrata Sen

Scott Bessent Moves To 'Cut Off' These Tax Credits, Other Federal Benefits For 'Illegal Aliens'

Scott Bessent

Scott Bessent, the Treasury Secretary, has revealed that the U.S. Treasury is taking steps to terminate federal benefits for “illegal aliens” amid President Donald Trump‘s directive to safeguard these benefits for U.S. citizens.

Tax Credits Barred For Ineligible Aliens

Bessent took to X on Friday and said that the Treasury would be issuing proposed regulations to clarify that certain individual income tax benefits, such as the Earned Income Tax Credit, the Additional Child Tax Credit, the American Opportunity Tax Credit, and the Saver's Match Credit, would no longer be accessible to illegal and other non-qualified aliens.

In his message, Bessent confirmed that the Treasury will proceed with freezing benefits for undocumented immigrants. He further underscored the department's commitment to national security and public safety through strict adherence to U.S. laws.

Bessent also noted that financial institutions had been exploited by illegal aliens and stated that this practice would end. He urged the Financial Crimes Enforcement Network (FinCEN) to step up efforts to detect, identify, and report suspicious cross-border fund transfers involving illegal aliens.

“Illegal aliens that use our financial institutions to move their illicitly obtained funds is exploitation, and it will end,” wrote Bessent

See Also: December Social Security Payments Might Come Early — But There’s a Catch

Restrictions Expand On Public Benefits

These measures are part of the Trump administration’s broader immigration policy, which was outlined in his Thanksgiving message on X. The policy addresses various issues, including the “refugee burden” on the U.S., which Trump attributes to “social dysfunction…something that did not exist after World War II.”

Earlier in July, the HHS Secretary, Robert F. Kennedy Jr., announced that illegal immigrants will be excluded from the Head Start program and several other federal benefits, including homelessness aid, Title X family planning, substance abuse treatment, and mental health services, all of which had typically relied on income-based eligibility rather than immigration status.

The Department of Education also declared that undocumented immigrants will no longer qualify for taxpayer-funded postsecondary education benefits. These changes follow the repeal of a Clinton-era guidance that had allowed some undocumented individuals to access certain federal public benefits.

Trump Moves To Tighten Migration Rules

Notably, just a few days before this announcement, Trump had declared a permanent halt to migration from Third World Countries and had announced plans to tighten immigration rules.

These policies were introduced in response to a shocking street attack near the White House, where an Afghan national opened fire on two West Virginia National Guard members. The administration also ordered a sweeping review of green cards from 19 “countries of concern” following the incident.

READ NEXT:

Photo courtesy: Maxim Elramsisy / Shutterstock.com

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.