Institute on Taxation and Economic Policy (ITEP)

September 16, 2026

Center on Budget and Policy Priorities: In Radical Departure From Long-Standing Policy and Federal Law, Trump Administration Proposes New Regulation to Take Tax Credits Away From Many Families That Include Immigrants With Lawful Status

ITEP Staff

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The Treasury Department has proposed a rule that would take away the refunded portion of certain tax credits from many individuals with lawful immigration status. Only individuals who have one of a narrow list of immigration statuses defined as “qualified” will remain eligible. The proposed changes would take away access to the Child Tax Credit and/or the Earned Income Tax Credit (EITC) from roughly 1 million people, including citizens, who are in families whose members do not meet the eligibility criteria in the proposed rule. We estimate that hundreds of thousands of U.S. citizen children would have their credit access taken away.

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