Bessent declares that illegal aliens will no longer collect taxpayer-funded benefits under Treasury enforcement.
““Under President Trump, the days of illegal aliens collecting taxpayer-funded benefits are over. The federal law is clear, and Treasury is enforcing it,””
Bessent announces Treasury and IRS proposed regulations clarifying refundable tax credits are federal public benefits under PRWORA.
“The Treasury and IRS proposed regulations to strengthen enforcement of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) by clarifying that the refunded portion of certain refundable individual income tax credits are federal public benefits”
Bessent says the regulations end abuse, protect tax system integrity, and prioritize Americans.
“These proposed regulations end the abuse, protect the integrity of the tax system, and put Americans first.””
Bessent argues taxpayers should not fund benefits for those legally barred from receiving them.
““American taxpayers should not be forced to foot the bill for benefits going to those who are barred by law from receiving them.”
Bessent specifies the regulations apply to four tax credits: adoption, child, American opportunity, and earned income.
“The proposed regulations apply PRWORA to four individual income tax credits: the adoption tax credit, the child tax credit, the American opportunity tax credit, and the earned income tax credit.”
Bessent states the action prevents illegal and non-qualified aliens from receiving public benefits they are ineligible for.
“This action cracks down on the abuse of taxpayer-funded refundable individual income tax credits and ensures that illegal aliens and other non-qualified aliens barred by federal law do not receive public benefits, which they are ineligible to receive.”