New regulations will prevent illegal aliens from claiming refundable tax credits meant for eligible American families and will help protect affordability for taxpayers.
NAPLES, FL— The Foundation for Government Accountability (FGA) today praised the U.S. Department of the Treasury for announcing regulations that will prevent illegal aliens from receiving refundable federal tax credits. This action comes at a time when rising federal spending continues to push up the cost of living, making it even more essential to ensure taxpayer dollars are directed only to those legally eligible to receive them.
As Treasury explains, refundable tax credits, like the Child Tax Credit and Earned Income Tax Credit, are federal public benefits. Under the 1996 welfare reform law, illegal aliens are not eligible to receive these taxpayer-funded benefits. Unfortunately, IRS bureaucrats have never implemented this statutory prohibition. Treasury’s proposal will implement the law and preserve these credits for those who are actually eligible.
“Every dollar the government wastes through fraud or abuse ultimately reduces Americans’ standard of living, and every tax dollar diverted to illegal aliens drives costs higher for families,” said Jonathan Ingram, Vice President of Policy and Research. “For years, the Biden administration’s open-borders approach allowed billions in taxpayer-funded benefits to flow to people who were never eligible to receive them. Treasury’s action is a long-overdue course correction. Thanks to President Trump and Treasury Secretary Scott Bessent, we are entering a new era of commonsense, America-First economic policy that finally puts citizens ahead of illegal aliens.”
“Treasury’s clarification ensures that tax benefits reach the American citizens they were designed to support. This is one more action the Trump administration has taken to reduce the costs that the Biden administration saddled Americans with,” Ingram added. “Protecting these credits from abuse not only upholds the law, it helps restore fairness and affordability for the taxpayers who fund them.”
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The Foundation for Government Accountability (FGA) is a non-profit, multi-state think tank that promotes public policy solutions to create opportunities for every American to experience the American Dream. To learn more, visit TheFGA.org.
