Scott Bessent Looks to Cut Off Tax Benefits for Illegal M...

By Peter Aitken

Politics Weekend Editor

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Treasury Secretary Scott Bessent on Friday announced his department will look to cut off federal benefits to illegal aliens.

In a message posted to X, Bessent said the Treasury would execute President Donald Trump’s order, which was posted across social media on Thanksgiving and took aim at a range of issues, including the “refugee burden” on America, which Trump blamed for “social dysfunction…something that did not exist after World War II.”

Newsweek reached out to the U.S. Treasury by email outside of normal business hours on Saturday afternoon for clarification and comment.

Why It Matters

Trump has reacted strongly to the shooting of two West Virginia National Guard members and the subsequent death of Specialist Sarah Beckstrom, blaming illegal immigration and the wider immigrant population for troubles in the United States– something he has done throughout both his administrations and one of the reasons for enacting the largest deportation operation in U.S. history.

The alleged shooter was an Afghan national named Rahmanullah Lakanwal who entered the U.S. as part of the Biden administration’s Operation Allies Welcome, which admitted tens of thousands of Afghan nationals who had assisted the U.S. during its operations in Afghanistan following the military withdrawal in 2021.

However, Lakanwal only applied for asylum in late 2024, and the Trump administration earlier this year approved his request following a background check.

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What To Know

Trump in his Thanksgiving message heavily criticized immigration policy in the U.S. and the benefits those immigrants receive.

Particularly, Trump described how “a migrant earning $30,000 with a green card will get roughly $50,000 in yearly benefits for their family” without detailing what those benefits are or how a green card holder would receive them.

The president’s message discussed the wider immigration population, not referring much to illegal immigrants. On Friday, Bessent then posted that he would be executing this freeze on benefits to illegal aliens while reposting Trump’s Thanksgiving message.

Bessent wrote that the Treasury “announced that it will issue proposed regulations clarifying that the refunded portions of certain individual income tax benefits are no longer available to illegal and other non-qualified aliens."

The decision appears to have already been in the works, with the department reclassifying certain tax credits as federal public benefits, including the Earned Income Tax Credit, the Additional Child Tax Credit, the American Opportunity Tax Credit, and the Saver’s Match Credit.

While illegal immigrants cannot generally obtain U.S. work authorization and are ineligible to receive Social Security and Medicare benefits despite paying taxes, some can gain this authorization through programs such as Deferred Action for Childhood Arrivals (DACA) or Temporary Protected Status (TPS).

It remains unclear how many individuals under those programs would be considered part of the population Bessent is addressing. The Hill noted in a report on Friday that the impact of the rule will depend on how it is written, meaning it is unclear if the decision will impact foreign workers, student visas, or families with children who are U.S. citizens.

The Treasury Department Takes on Illegal Immigration

The Treasure Department separately posted that “illegal aliens present significant threats to national security and public safety,” and that the Treasury will “continue to protect the American people by faithfully upholding the laws of the United States.”

Bessent also wrote that "illegal aliens that use our financial institutions to move their illicitly obtained funds is exploitation, and it will end," posting a press release from the Financial Crimes Enforcement Network (FinCEN) that highlighted that the country has seen “a significant volume of cross-border funds transfers, including remittances from individuals located in the United States.”

The agency already “has taken multiple steps this year to highlight risks presented by cross-border financial activity” and therefore is now urging money services businesses to “be vigilant in detecting, identifying, and reporting suspicious activity connected to cross-border funds transfers involving illegal aliens, i.e., individuals without legal status in the United States.”

This does not fully explain what Bessent meant about illegal immigrants benefiting from income tax benefits, nor does it address what Trump discussed regarding the benefits immigrants can receive in the U.S.

What People Are Saying

President Donald Trump in his Truth Social Thanksgiving post wrote, in part: "The official United States Foreign population stands at 53 million people (Census), most of which are on welfare, from failed nations, or from prisons, mental institutions, gangs, or drug cartels. They and their children are supported through massive payments from Patriotic American Citizens who, because of their beautiful hearts, do not want to openly complain or cause trouble in any way, shape, or form. They put up with what has happened to our Country, but it’s eating them alive to do so!"

He ended his message by writing: "Only REVERSE MIGRATION can fully cure this situation."

Treasury Secretary Scott Bessent wrote on X on Friday: "[President Donald Trump] is right—if you’re here illegally, there’s no place for you in our financial system. Illegal aliens that use our financial institutions to move their illicitly obtained funds is exploitation, and it will end."

Representative Ro Khanna, a California Democrat, wrote on X, in part: "What maybe a casual rant on social media by the President is devastating to millions of hard working, law abiding immigrant families. They are reaching out scared. This is not the time for politicians to cave. I am sick of politicians demonizing immigrants and voting for things like the Laken Reilly Act that deprive immigrants of basic rights. We must stand up for the contributions immigrants make to America."

What Happens Next?

The Treasury will clarify the means by which it will cut off benefits to illegal aliens, and the president will continue to look to regulate immigration and illegal populations.

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