Scott Bessent vows to cut illegal migrants off from tax refunds, money transfers: 'No place for you'

WASHINGTON, DC: The day marked another setback for migrants as the Trump administration advanced new measures aimed at restricting support for illegal migrants. The administration is now pushing to block access to federal tax benefits. It is also preparing to limit the use of money-transfer services.

Treasury Secretary Scott Bessent signaled these steps on Friday, November 28. “We are working to cut off federal benefits to illegal aliens,” Bessent shared on X. He clearly mentions that if anyone is an 'alien', aka immigrant, then there is 'no place' for them in the 'financial system'.

His statement followed President Donald Trump’s announcement that he would “permanently pause” immigration from “third-world countries.” This declaration came soon after two National Guard members were shot by a suspected Afghan national.

New regulations advance as the Treasury targets federal benefits for illegal migrants

Under Donald Trump’s second presidential term, many new rules have been introduced. They have also been enforced in ways that have become a major shock for many non-citizens in the country. Now, another rule is moving forward at high speed.

In one post, Bessent reshared Trump’s announcement about pausing immigration from “third-world countries." “At (President Trump’s) direction, we are working to cut off federal benefits to illegal aliens and preserve them for US citizens,” which means the Treasury Department will propose new regulations.

He added that the upcoming regulations will “clarify that the refunded portions of certain individual income tax benefits are no longer available to illegal and other non-qualified aliens."

"Covering the Earned Income Tax Credit, the Additional Child Tax Credit, the American Opportunity Tax Credit, and the Saver’s Match Credit," he concluded. Treasury’s final regulations are expected to apply beginning in tax year 2026. 

In another post, he shares, "If you’re here illegally, there’s no place for you in our financial system." He added that illegal migrants often "use our financial institutions to move their illicitly obtained funds."

Donald Trump’s latest remarks signal deeper policy shifts on illegal immigration

Trump shared a post on Friday, November 28. He said, "The real migrant population is much higher. This refugee burden is the leading cause of social dysfunction in America, something that did not exist after World War II."

He added, "As an example, hundreds of thousands of refugees from Somalia are completely taking over the once great State of Minnesota. Somalian gangs are roving the streets looking for ‘prey’ as our wonderful people stay locked in their apartments and houses hoping against hope that they will be left alone."

After this, he moved ahead with his strategy for a “permanent pause” on immigration from any third-world country. In a separate post, Scott  PRWORA, a 1996 law, already blocks illegal immigrants from receiving most taxpayer-funded benefits.

In a February order, Trump said that past administrations had weakened the law, according to The New York Post. Treasury now wants to treat federal tax benefits as “federal public benefits” under PRWORA.