HYDE-SMITH REINTRODUCES BILL TO SAVE BILLIONS BY BLOCKING ILLEGAL ALIENS’ ACCESS TO FEDERAL CHILD TAX CREDITS
Safeguarding American Workers’ Benefits Act Offered with Trump in White House, Budget Reconciliation in the Offing
WASHINGTON, D.C. – With President Trump back in the Oval Office, U.S. Senator Cindy Hyde-Smith (R-Miss.) today reintroduced legislation to save taxpayers billions of dollars annually by closing federal tax loopholes that allow illegal immigrants to claim child tax credits.
Hyde-Smith’s Safeguarding American Workers’ Benefits Act (S.268) could save the government more than $27.8 billion over 10 years by standardizing the eligibility requirements for both the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC). Currently, illegal immigrants can receive the credits because both currently use different criteria to determine who can claim the federal benefits.
“I welcome President Trump’s intent to target wasteful spending and enforce immigration laws. The environment is certainly friendlier now to adopt legislation that saves billions of dollars and ensures that only U.S citizens and persons authorized to work can benefit from the Child Tax Credit and Earned Income Tax Credit,” Senator Hyde-Smith said.
In addition to saving taxpayers billions of dollars, the legislation would also provide additional funds for potential expansion of the credits during the planned budget reconciliation process this year.
“I will work to ensure that Safeguarding American Workers’ Benefits Act is considered as part of the debate to extend and improve on the Trump tax cuts that expire this year,” Senator Hyde-Smith added.
Congressman Clay Higgins (R-La.) introduced a House companion bill (HR.778).
“Over the past four years, Democrats prioritized financial compensation and benefits to illegal aliens over American citizens,” said Congressman Higgins. “Hardworking Americans have not only been footing the bill for these illegals, but our nation’s debt has risen to over $36 trillion. This legislation will save taxpayer dollars, end tax credits for illegal immigrants, and potentially provide cost savings for the upcoming budget reconciliation process. I am honored to work with Senator Hyde-Smith and the Trump Administration to ensure that our tax dollars are benefiting the American people.”
Specifically, the Safeguarding American Workers’ Benefits Act would require both parents and children to have Social Security numbers (SSNs) valid for employment purposes in order to qualify for the EITC and CTC, primarily by applying the requirement to both the tax filer (or spouse for joint filers) and qualifying children.
The Internal Revenue Service (IRS) currently bases eligibility for EITC and CTC benefits on varying standards. For instance:
- Earned Income Tax Credit: While the EITC should only go to persons with Social Security numbers (SSNs) authorized to work in the United States, some people receive the EITC even though neither they, nor their children, possess SSNs with the work authorization. This loophole was created because, prior to 2003, the Social Security Administration issued SSNs to anyone who wanted to open a bank account or obtain a license. The Social Security Administration no longer issues SSNs for such purposes, but it never recalled those SSNs either, enabling “unauthorized persons” to claim this credit.
- Child Tax Credit: Noncitizens can claim the CTC as long as at least one child has a SSN valid for employment purposes. After 2025, however, the work authorization requirement will be dropped and anyone, including noncitizens, with a SSN or IRS-issued individual taxpayer identification number will be able to claim the CTC.
U.S. Senator Mike Lee (R-Utah) is an original cosponsor of the Safeguarding American Workers’ Benefits Act, which has been endorsed by Heritage Action.
Hyde-Smith, who serves on the Senate Homeland Security Appropriations Subcommittee, introduced this same measure in the 118th Congress partly in response to the Biden administration’s open border policies.
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