Illegal aliens routinely have been getting checks paid for with the taxes on American citizens, and Treasury Secretary Scott Bessent says he’s working now to stop it.
“Sometimes you read about a crackdown on benefits received by illegal aliens and think to yourself, ‘Wait, how were they getting these things in the first place? I thought they were here illegally?’” commented RedState.com.
The fact is illegal aliens sometimes file tax forms, and on those they had been able to claim refundable credits on issues such as adoption, child, American opportunity and earned income.
Those are way different from refunds of income taxes paid, because they are in special categories that include the refunds even if the taxpayer hasn’t paid that much in taxes, or any taxes all. They money came directly from taxpayers.
Proposed now are new regulations that would stop that special spending for illegals completely.
Explained Bessent, “Under @POTUS, the days of illegal aliens collecting taxpayer-funded benefits are over. The federal law is clear, and @USTreasury is enforcing it. American taxpayers should not be forced to foot the bill for benefits going to those who are barred by law from receiving them. These proposed regulations end the abuse, protect the integrity of the tax system, and put Americans first.”
Under @POTUS, the days of illegal aliens collecting taxpayer-funded benefits are over. The federal law is clear, and @USTreasury is enforcing it. American taxpayers should not be forced to foot the bill for benefits going to those who are barred by law from receiving them. These…
— Treasury Secretary Scott Bessent (@SecScottBessent) August 19, 2026
The messaging from the White House was a duplicate.
The days of illegal aliens collecting taxpayer-funded benefits are over.
President Trump and @SecScottBessent are committed to cutting taxpayer benefits for illegal aliens. This will save Americans BILLIONS, reinstate trust in our tax system, and put Americans first. pic.twitter.com/0vCHPghSDk
— The White House (@WhiteHouse) August 19, 2026
Estimates are that the move will save U.S. taxpayers some $3 billion.
The RedState report said an estimated one million illegals would be affected and in future “ineligible to take advantage of the credits.”
Under the plan, “The taxpayer must be a U.S. citizen, U.S. national, or qualified alien on the date the taxpayer files the federal income tax return first claiming the affected credit. Qualified aliens include lawful permanent residents, asylees, refugees, and certain other groups defined or specified under PRWORA [Personal Responsibility and Work Opportunity Reconciliation Act of 1996].”
Further the taxpayer must declare on the tax return, under penalty of perjury, the taxpayer is eligible to get the tax money.
The Dallas Express said the new rules are coming from U.S. Treasury and the IRS.
The rules come after a legal analysis by the Department of Justice’s Office of Legal Counsel who said the refunded portions of the affected credits constitute federal public benefits.
IRS chief Frank. J. Bisignano said the refundable tax credits were set up to “help low-to-middle-income American families and workers receive critical financial support.”
The new rules, he said, ensure those funds are “reserved for eligible taxpayers.”
