Treasury plans to change tax credit eligibility in a move critics say will hurt immigrant taxpayers
November 20, 2025
The U.S. Treasury Department plans to reclassify certain refundable tax credits as “federal public benefits,” barring undocumented immigrants and some noncitizens from receiving them. This change affects DACA recipients and those with Temporary Protected Status. On Thursday, the Treasury announced plans to redefine credits like the Earned Income Tax Credit and the Additional Child Tax Credit. The final regulation is expected to apply starting in 2026. Critics argue this move targets immigrants who are authorized to work and pay taxes. Despite paying significant taxes, undocumented immigrants often don’t receive the same benefits as U.S. citizens.