President Donald Trump's Treasury Department will issue a new rule that will prevent illegal aliens and foreign nationals from receiving income tax breaks such as the lucrative Earned Income Tax Credit and the Additional Child Tax Credit, Breitbart News has exclusively learned.
On Thursday, Treasury Secretary Scott Bessent said the agency will issue new rules regarding who is eligible for such tax breaks under the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA).
“Under President Trump’s leadership, we are upholding the law and preventing illegal aliens from claiming tax breaks meant for American citizens,” Bessent told Breitbart News.
Specifically, the rule would clarify that the refundable portions of the Earned Income Tax Credit, Additional Child Tax Credit, American Opportunity Tax Credit, and Saver Credit are federal public benefits and, therefore, illegal aliens and other foreign nationals will not be eligible to receive such benefits.
“The Treasury Department's Office of Tax Policy and the Internal Revenue Service have worked tirelessly to advance this initiative and ensure its successful implementation,” Bessent said. “Their diligence and professionalism reflect this administration's determination to maintain the integrity of our tax system. We will continue to ensure that taxpayer resources are directed only to those who are legally entitled to do so.”
The rule comes after the Justice Department's Office of Legal Counsel issued an opinion on the issue that interpreted tax breaks as federal public benefits, making illegal aliens ineligible.
In 2021, Center for Immigration Studies detailed the extent to which millions of illegal aliens residing in the United States benefit from income tax benefits.
The researchers estimate that illegal aliens who receive Social Security numbers will likely receive $2.9 billion in cash payments—$2 billion from the Earned Income Tax Credit and about $890 million from the Supplemental Child Tax Credit.
Likewise, illegal aliens with Individual Taxpayer Identification Numbers are estimated to receive between $870 million and $1.6 billion in additional child tax credits.
The Treasury rule will take effect beginning with tax year 2026.
John Binder is a reporter for Breitbart News. Email him at [email protected]. Follow him on Twitter Here.
