Bessent Announces Plan to End Tax Benefits for Those in Country Illegally

Treasury Secretary Scott Bessent announced Friday that the Trump administration will move to eliminate federal tax benefits for individuals residing in the United States illegally, a policy shift that could save taxpayers billions of dollars annually while restoring the original intent of these programs.

The facts are straightforward. Under current regulations, individuals who entered the country illegally have been able to access refundable tax credits designed explicitly for American citizens and legal residents. This represents not merely poor policy, but a fundamental perversion of the social contract between government and the governed.

Bessent outlined specific credits that will be affected by the proposed regulations: the Earned Income Tax Credit, the Additional Child Tax Credit, the American Opportunity Tax Credit, and the Saver’s Match Credit. These are refundable credits, meaning recipients can receive payments even if they owe no taxes. In other words, these are direct wealth transfers from American taxpayers to individuals who violated immigration law to enter the country.

The announcement follows President Trump’s Thanksgiving statement declaring a pause on migration from third-world countries and promising to end all federal benefits to non-citizens. Trump cited census data indicating the United States currently hosts a foreign-born population of 53 million people, many of whom he stated came from failed nations or criminal backgrounds and now depend on taxpayer-funded welfare programs.

This is not complicated. American tax dollars should benefit Americans. The generosity of the American people has been systematically exploited by a broken immigration system that rewards illegal entry with access to benefits meant for citizens who contribute to the system through taxes and civic participation.

Bessent went further, stating that illegal immigrants have no place in the American financial system. He specifically addressed the use of financial institutions by illegal aliens to move illicitly obtained funds, calling it exploitation that must end. This represents a comprehensive approach to immigration enforcement that extends beyond border security to include financial accountability.

The timing of this announcement is particularly relevant given recent revelations from Minnesota, where billions of taxpayer dollars were reportedly stolen during Governor Tim Walz’s tenure. The funds were allegedly funneled through fake nonprofits and shell companies, highlighting the vulnerability of government benefit programs to fraud and abuse when proper verification systems are not in place.

The logical chain here is simple. If individuals entered the country illegally, they are by definition not entitled to benefits reserved for legal residents and citizens. The refundable nature of these tax credits means they function as direct payments rather than mere deductions, making them particularly attractive targets for exploitation.

Critics will inevitably claim this policy lacks compassion. But compassion without wisdom is not virtue. True compassion means ensuring that limited resources go to those who need them most and who have followed the rules to be here legally. It means protecting the integrity of systems designed to help struggling American families, not subsidizing illegal immigration.

The proposed regulations represent a return to common sense governance. They acknowledge that citizenship means something, that borders matter, and that American taxpayers should not be forced to subsidize those who violated immigration law as their first act upon entering the country.

The Treasury Department’s move is both legally sound and morally necessary. It restores the principle that government benefits exist to serve citizens and legal residents, not to incentivize illegal immigration. This is not controversial. It is basic logic applied to immigration policy.