In a statement that was released by the Treasury and highlighted online by MAGA Rep. Brandon Gill, the Scott Bessent-led Treasury Department announced that it would be cutting off illegal aliens from refundable income tax credits, which, until now, had apparently been used by illegal aliens to fraudulently access American tax dollars.
It was freshman MAGA Congressman Brandon Gill (R-TX) who drew attention to the major news on X, saying, “Illegal aliens shouldn’t be in our country to begin with. They certainly shouldn’t receive a single penny of refundable tax credits. @USTreasury is putting Americans first and cutting off taxpayer dollars from those who illegally entered and exploited our system.”
Beginning, the Treasury Department statement described what is being reworked, explaining, “The U.S. Department of the Treasury announced today that it will issue regulations concerning the treatment of certain refundable individual income tax credits under the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA).”
Continuing, using terms that more people might know and understand because they come up every single tax season, the Treasury explained, “Treasury will issue a forthcoming notice of proposed rulemaking to clarify that the refunded portions of certain individual income tax credits, including the Earned Income Tax Credit, the Additional Child Tax Credit, the American Opportunity Tax Credit, and the Saver’s Match Credit, are “federal public benefits” within the meaning of PRWORA.”
Getting to the real highlight of the statement, the Treasury noted that illegal aliens will be completely cut off from the hugely valuable tax credit, meaning they’ll no longer be able to access those American tax dollars. It said, “Accordingly, illegal aliens and other non-qualified aliens would no longer be able to receive these benefits funded by the American taxpayer.”
Then, noting when the changes will take effect, it said, “The Department of Justice’s Office of Legal Counsel recently issued an opinion adopting this interpretation. Treasury plans to promptly issue a notice of proposed rulemaking that accounts for the Department of Justice’s legal analysis, and Treasury’s final regulations are expected to apply beginning in tax year 2026.”
Returning to the matter of illegal immigration, the statement noted that this is a key move in ensuring the benefits only end up benefiting American citizens, saying, “This action represents a victory for President Trump’s commitment to enforcing our immigration laws and preserving taxpayer-funded benefits exclusively for those who are legally entitled to receive them.”
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Treasury Secretary Scott Bessent, for his part, commented on the illegal immigration aspect as well, saying, “Under President Trump’s leadership we are enforcing the law and preventing illegal aliens from claiming tax benefits intended for American citizens. Treasury’s Office of Tax Policy and the Internal Revenue Service have worked tirelessly to advance this initiative and ensure its successful implementation.”
He added, commenting more generally on who can access benefits, “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.”
Watch Karoline Leavitt call out Democrats for funding healthcare for illegal aliens here: