“We’ll see more people having to make impossible decisions,” said Burnside, warning that restricting families from health benefits will hurt entire communities.
Filers using Individual Taxpayer Identification Numbers (ITINs) pay around $100 billion in taxes yearly but would lose access to tax credits under this proposal, part of an administration effort to limit immigrant access to public services.
“Denying these benefits to tax-paying immigrant families undermines the claim that this is pro-family, pro-worker,” said Kat Menefee of the National Women’s Law Center Action Fund.
The proposal continues limits from the 2017 tax overhaul, leaving 17 million low-income households and 1 million children without full child tax credit access. Previously, eligibility was based on tax filing status, not immigration status.
Rep. Linda Sánchez criticized the bill for targeting working taxpayers seeking the American Dream.
This plan would also end the IRS Direct File program and tighten Earned Income Tax Credit (EITC) eligibility, risking further losses for low-income families.
While the bill may change, removing benefits from immigrant and mixed-status families aligns with Republican spending cuts sought by President Trump.
During the pandemic, the credit was expanded, lifting millions from poverty. Since reverting to $2,000 in 2022, child poverty has risen. A bipartisan bill to modestly raise the credit was blocked last year, signaling Republicans’ current reluctance.
Bob Greenstein of the Brookings Institution warned that cuts to Medicaid, SNAP, and tax credits would severely impact working families—many of whom supported Trump in 2024.
Sen. Josh Hawley has floated a payroll tax offset for parents, but no formal bill exists. Democrats propose an ambitious tiered credit, but its passage is unlikely amid spending cuts.
If lawmakers fail to act, the child tax credit will drop to $1,000 this fall, affecting millions of families already struggling to stay afloat.
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