The question every American should be asking when they read this is obvious: why were they getting these benefits in the first place?
Treasury Secretary Scott Bessent announced Wednesday that the Treasury Department and IRS are proposing new regulations to restrict four refundable tax credits — the adoption credit, child tax credit, American opportunity credit, and earned income tax credit — to U.S. citizens, U.S. nationals, and qualified aliens only. Roughly one million illegal aliens who currently receive these credits would lose eligibility. Estimated savings: $3 billion.
It’s insane – insane – illegals were getting this benefit in the first place, and Bessent’s statement was unambiguous: “Under President Trump, the days of illegal aliens collecting taxpayer-funded benefits are over. The federal law is clear, and Treasury 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.”
IRS Chief Executive Frank Bisignano explained what these credits were designed for — and who has been exploiting them: “Refundable tax credits, like the Earned Income Tax Credit, were enacted to help low-to-middle income American families and workers receive critical financial support. Today’s proposed regulations ensure that federally funded benefits are reserved for eligible taxpayers and protect the integrity of every taxpayer dollar.”
The “refundable” designation is the key detail that explains how this worked. When a credit exceeds what someone owes in taxes, they receive the difference as a cash refund from the government. People with little or no tax liability — including many illegal aliens — were receiving thousands of dollars in cash per year from the American taxpayer specifically because the credits are refundable. Not as a reimbursement for taxes paid. As a direct government payment.
This has been going on for years. The Biden administration was aware of it and chose not to fix it. The IRS was aware of it and chose not to fix it. The law has always restricted these benefits to citizens and qualified aliens — but the enforcement mechanism was essentially nonexistent. People filed, people collected, nobody checked.
The proposed regulation closes it with a straightforward requirement: the taxpayer must declare under penalty of perjury that they are eligible. They must be a citizen, national, or qualified alien on the date they file. For joint returns, only one spouse must meet that standard.
Three billion dollars. One million recipients who shouldn’t have been receiving anything. A law that was always on the books but never enforced.
This is what “America First” actually looks like in practice — not a slogan, but a Treasury regulation published in the Federal Register and enforced by the IRS. The credits were designed for American families. Starting now, that’s who gets them.
