The Trump administration on Wednesday proposed a rule restricting eligibility
for the refundable portions of four tax credits aimed at children, students,
adoptive parents and low-income workers. Under the proposal only U.S. citizens
and certain lawfully present foreigners — including lawful permanent residents,
aylees and refugees — would qualify for refundable payments. Treasury Secretary
Bessent said the move ends what the administration called improper access by
illegal immigrants to taxpayer-funded benefits. The Treasury said the rule would
cover undocumented immigrants and some immigrants legally authorized to work,
and estimated savings of $700m–$2.6bn per year.
