WASHINGTON

The US will issue new regulations to restrict certain federal tax credits so that illegal immigrants and other non-qualified aliens can no longer claim them, Treasury Secretary Scott Bessent said Friday.

At President Donald Trump's direction, Bessent said his department is working to cut off federal benefits to "illegal aliens and preserve them for US citizens."

He said the department "announced that it will issue proposed regulations clarifying 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."

Earlier, the US Treasury Department's Financial Crimes Enforcement Network (FinCEN) issued an alert calling on money services businesses (MSBs) to heighten scrutiny of cross-border funds transfers involving individuals without legal status in the country.

Bessent backed Trump, saying: "If you’re here illegally, there’s no place for you in our financial system."

"Illegal aliens that use our financial institutions to move their illicitly obtained funds is exploitation, and it will end," he added.