Trump is putting America First, exactly what MAGA voted for.
The Trump administration delivered another major victory for American taxpayers this week, announcing a sweeping plan to block illegal migrants from receiving federal tax benefits and to shut down financial loopholes that help illegals move money through U.S. institutions.
Treasury Secretary Scott Bessent confirmed the move on X, stating that President Trump ordered the department to “cut off federal benefits to illegal aliens and preserve them for U.S. citizens.”
Trump Moves To Shut Down Illegal Access to Taxpayer-Funded Benefits
As part of the new policy push, the Treasury Department will introduce regulations that stop illegal migrants from accessing the refundable parts of major tax credits, including:
- Earned Income Tax Credit
- Additional Child Tax Credit
- American Opportunity Tax Credit
- Saver’s Match Credit
These programs were never meant for illegal immigrants, yet for years they have been exploited due to weak enforcement under past administrations.
President Trump’s February executive order made it clear: Americans come first, and illegal migrants will no longer receive benefits funded by U.S. taxpayers.
Restoring the Original Intent of the Law
Although the 1996 Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) blocked illegal migrants from receiving most government benefits, Trump argues that multiple administrations ignored Congress and expanded access anyway.
Treasury will now classify these tax credits as “federal public benefits,” officially placing them under PRWORA’s protections and closing loopholes once and for all.
The Department of Justice’s Office of Legal Counsel recently backed this interpretation, clearing the way for final regulations expected to take effect in 2026.
Treasury Warns of Illegals Using U.S. Financial System For Illicit Cash
In an additional warning, Bessent said illegal migrants routinely use American financial institutions to move unlawfully obtained money — calling it a direct threat to national security and public safety.
“This exploitation will end,” Bessent said. He added that President Trump is absolutely right: “If you’re here illegally, there’s no place for you in our financial system.”
On the same day, Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a nationwide alert to money-service businesses — including check-cashing outlets, digital payment processors, and remittance services — urging heightened scrutiny.
FinCEN reminded businesses they are required to file suspicious activity reports for any questionable transaction of $2,000 or more, especially when tied to cross-border transfers of illegally earned money.
Millions in Stolen Taxpayer Funds May Be Reaching Terror Groups
This new enforcement push follows disturbing revelations from City Journal, which reported that millions in stolen Minnesota welfare funds may have been funneled — sometimes unknowingly — to Somalia’s al-Shabab terror network.
According to former fraud investigators, state lawmakers, and federal counterterror officials, the vast majority of defendants in these large-scale welfare fraud cases are Somali or Somali-American, with some of the stolen taxpayer money eventually ending up in terror-linked regions.
A Win for Taxpayers and a Warning to Illegals
For millions of Americans, especially seniors watching their tax dollars vanish while illegal immigration soars, this is a long-overdue shift.
President Trump’s latest action sends a clear message:
Taxpayer-funded benefits belong to American citizens — not illegal migrants.
And under Trump, the financial pipeline supporting illegal immigration and overseas threats is being shut down for good.