Treasury Sec. Scott Bessent Cuts Off Federal Benefits to Illegal Aliens Effective Immediately

Treasury Sec. Bessent

🚨 BREAKING: Treasury Secretary Scott Bessent Moves to Cut Off Federal Benefits for Illegal Aliens Under President Trump’s Orders

In a major policy shift, Treasury Secretary Scott Bessent announced that the U.S. Treasury Department is immediately working to block federal tax benefits from going to illegal immigrants, following direct orders from President Donald Trump.

The move is being framed as a crackdown on what the administration calls “improper payouts,” ensuring that U.S. taxpayer-funded benefits go exclusively to American citizens and qualified residents.

Bessent’s Announcement

In a statement posted on X, Bessent revealed that Treasury will soon issue new regulations that prevent illegal or otherwise non-qualified aliens from receiving refundable portions of key federal tax credits.

The regulation overhaul will apply to:

Earned Income Tax Credit (EITC)
Additional Child Tax Credit (ACTC)
American Opportunity Tax Credit (AOTC)
Saver’s Match Credit

“These refundable tax benefits will no longer be available to illegal and other non-qualified aliens,” Bessent stated, saying the change fulfills President Trump’s directive to preserve benefits for American citizens.

Political Reactions

Supporters hailed the move as long overdue, noting that many believed illegal immigrants were not receiving such taxpayer-funded benefits—only to discover that they were through refundable tax credits.

Critics, however, argue the decision will require significant administrative changes and could spark legal challenges.

What’s Next

Treasury will publish the proposed regulations in the Federal Register, and the changes are expected to move quickly through the rulemaking process as part of Trump’s broader effort to tighten federal eligibility requirements across government benefit programs.

FAQs: Treasury Secretary Scott Bessent’s Move to Cut Off Benefits for Illegal Aliens

1. What did Treasury Secretary Scott Bessent announce?

Scott Bessent announced that the Treasury Department will propose new regulations to cut off refundable federal tax credits for illegal and non-qualified aliens, following directives from President Trump.

2. Which federal benefits will no longer be available to illegal immigrants?

The proposed regulations target refundable portions of these tax credits:

Earned Income Tax Credit (EITC)
Additional Child Tax Credit (ACTC)
American Opportunity Tax Credit (AOTC)
Saver’s Match Credit

3. Why is the Biden administration being accused of lying about benefits going to illegal aliens?

Supporters claim they were told illegal immigrants received zero tax-funded benefits, but Bessent’s announcement suggests refundable tax credits were being accessed—prompting accusations that Democrats misled the public.

4. Does this change affect legal immigrants?

No. The regulation applies only to illegal aliens or those who do not meet federal eligibility criteria. Qualified legal residents will continue receiving eligible benefits.

5. How soon will these changes take effect?

Treasury will issue the proposed regulations shortly. After publication, they will move through the federal rulemaking process, which is being fast-tracked under Trump’s orders.

6. Why did President Trump order this change?

President Trump directed Treasury to preserve federal tax benefits for American citizens and prevent payments to individuals who are in the country unlawfully.

7. Could this face legal challenges?

Possibly. Immigration-related benefit restrictions often face lawsuits, but the administration appears prepared to defend the policy.

8. What is the overall goal of this policy?

To ensure that U.S. taxpayer dollars go to eligible Americans—not illegal aliens—and to close loopholes in refundable tax credit programs.

The full Alert is available at: https://www.fincen.gov/system/files/FinCEN_Alert_Cross_Border_FINAL508.pdf

At @POTUS @realDonaldTrump's direction, we are working to cut off federal benefits to illegal aliens and preserve them for U.S. citizens.@USTreasury announced that it will issue proposed regulations clarifying that the refunded portions of certain individual income tax benefits… https://t.co/pn2MXoxDHC
— Treasury Secretary Scott Bessent (@SecScottBessent) November 28, 2025

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