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The Treasury Department announced on Nov. 20 that it would issue new regulations to bar individuals with unlawful status in the United States from accessing tax credit benefits.

In a <a href="https://home.treasury.gov/news/press-releases/sb0321" target="_blank" rel="nofollow noopener">statement</a>, the Treasury said the proposed rulemaking will cover the “refunded portions” of certain individual income tax credits, such as the earned income tax credit, additional child tax credit, American opportunity tax credit, and saver’s match credit.

Under the proposals, those credits would fall within the definition of “federal public benefits” in the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996, which will exclude illegal immigrants from eligibility to access them.

“Under President [Donald] Trump’s leadership we are enforcing the law and preventing illegal aliens from claiming tax benefits intended for American citizens,” Treasury Secretary Scott Bessent said in the statement.

“Treasury’s Office of Tax Policy and the Internal Revenue Service have worked tirelessly to advance this initiative and ensure its successful implementation.”

The Treasury stated that the Department of Justice has recently issued an opinion supporting the Treasury’s interpretation of the law, with the final regulations expected to apply beginning in tax year 2026.

Brandon DeBot, policy director at the NYU Tax Law Center, <a href="https://taxlawcenter.org/blog/statement-on-treasury-announcement" target="_blank" rel="nofollow noopener">said</a> the Treasury’s new interpretation “directly contradicts congressional understanding and administrative practice” of the law.

According to DeBot, the code currently provides that the child tax credit can be claimed for citizen children as long as at least one parent has a Social Security number.

“Over decades, Congress has laid out clear rules in the tax code that certain mixed status families and lawfully present immigrants are eligible to claim certain tax credits,” DeBot said in a <a href="https://taxlawcenter.org/blog/statement-on-treasury-announcement" target="_blank" rel="nofollow noopener">statement</a>.

“The administration’s novel reinterpretation of the law argues that a provision of a 1996 law overrides such clear provisions of the tax code,” he added. “Denying tax credits to immigrant families requires Congress to act explicitly.”

The move follows Trump’s Feb. 19 executive <a href="https://www.whitehouse.gov/presidential-actions/2025/02/ending-taxpayer-subsidization-of-open-borders/" target="_blank" rel="nofollow noopener">order</a> directing federal agencies to limit illegal immigrants’ access to federal public benefits “to the maximum extent permitted by law.”

Trump stated in his order that Title IV of PRWORA bars illegal immigrants from relying on public resources, but that past administrations have undermined the limitations.

“Over the last four years, in particular, the prior administration repeatedly undercut the goals of that law, resulting in the improper expenditure of significant taxpayer resources,” the president stated.

“My administration will uphold the rule of law, defend against the waste of hard-earned taxpayer resources, and protect benefits for American citizens in need, including individuals with disabilities and veterans,” he added.

<em>From <a href="https://www.theepochtimes.com/us/treasury-department-to-issue-rules-limiting-tax-credit-benefits-for-illegal-immigrants-5947924">The Epoch Times</a></em>

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