U.S. Senator Cindy Hyde-Smith has reintroduced a bill aimed at saving billions of dollars by closing tax loopholes that allow illegal immigrants to claim child tax credits. The Safeguarding American Workers’ Benefits Act (S.268) seeks to standardize eligibility requirements for the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC), potentially saving over $27.8 billion in ten years.
Hyde-Smith expressed support for President Trump’s efforts to reduce wasteful spending and enforce immigration laws, stating, “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.”
The legislation aims not only to save taxpayer money but also to provide additional funds for potential credit expansion during this year’s budget reconciliation process. Hyde-Smith emphasized her commitment to ensuring the bill’s consideration as part of discussions on extending Trump-era tax cuts set to expire this year.
Congressman Clay Higgins introduced a companion bill in the House, criticizing Democrats for prioritizing benefits for illegal aliens over American citizens. He stated, “This legislation will save taxpayer dollars, end tax credits for illegal immigrants, and potentially provide cost savings for the upcoming budget reconciliation process.”
The proposed act would require both parents and children claiming EITC and CTC benefits to have Social Security numbers valid for employment purposes. This requirement would apply primarily to tax filers or their spouses in joint filings, as well as qualifying children.
Currently, the Internal Revenue Service uses different standards for determining eligibility for these credits. U.S. Senator Mike Lee is an original cosponsor of the bill, which has received endorsement from Heritage Action.
Hyde-Smith previously introduced this measure in response to what she described as open border policies under the Biden administration.
