U.S. Treasury Secretary Scott Bessent announced that the Treasury Department is moving to block “illegal aliens” from accessing certain federal tax credits and using U.S. financial systems for remittances or transfers. Under the new rules, refundable credits such as the Earned Income Tax Credit, Additional Child Tax Credit, American Opportunity Tax Credit and Saver’s Match Credit will be re-defined as “federal public benefits,” thus becoming inaccessible to undocumented and non-qualified immigrants beginning with the 2026 tax year.
In addition, Treasury’s financial-crime enforcement network issued guidance urging banks, remittance services, and money-transfer firms to flag and report suspicious cross-border transactions—particularly those involving funds from unverifiable employment or suspected illicit activity. Bessent stated that unauthorized migrants using American financial institutions to move illegally obtained money “will end,” calling the crackdown necessary to safeguard the integrity of the U.S. tax and financial systems.