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American Focus > Blog > Economy > How Republican ‘one big beautiful bill’ targets immigrant finances
Economy

How Republican ‘one big beautiful bill’ targets immigrant finances

Last updated: June 26, 2025 10:49 am
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How Republican ‘one big beautiful bill’ targets immigrant finances
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The Republican megabill currently under consideration by lawmakers is causing quite a stir, as it aims to tighten the financial restrictions on immigrant households, regardless of their legal status in the United States. This legislation, endorsed by President Donald Trump, includes provisions that would limit access to tax benefits such as the child tax credit. Additionally, it proposes levying a tax on remittances sent abroad by immigrants and imposing a $1,000 fee on those seeking asylum.

Economists and policy experts have expressed concerns about the potential impact of these measures on immigrant families. Tara Watson, director of the Center for Economic Security and Opportunity at the Brookings Institution, believes that these provisions will significantly impact the financial well-being of immigrants in the U.S.

The House Judiciary Committee, chaired by Rep. Jim Jordan, R-Ohio, has defended these financial measures as necessary to make immigration services self-sustaining. They argue that these measures are essential for enforcing immigration laws and maintaining responsible fiscal policies.

The proposed legislation is part of a larger effort by Republicans to fund a multitrillion-dollar package of tax cuts, primarily benefiting wealthy households. These cuts coincide with the Trump administration’s aggressive deportation agenda, further complicating the financial landscape for immigrant communities.

Despite the Senate parliamentarian’s recent ruling against certain provisions in the bill, GOP lawmakers are determined to push forward with their agenda. The Senate is expected to vote on the measure in the coming weeks, although the specifics of the final legislation remain uncertain.

One of the most controversial aspects of the bill is the restriction on access to the child tax credit for children without a Social Security number. This provision, if enacted, could impact an estimated 1 million children, most of whom are U.S. citizens or legal residents. The House and Senate versions of the bill differ slightly in their approach to this issue, with the House imposing stricter eligibility criteria than the Senate.

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In addition to the child tax credit, the legislation also includes provisions that would affect other tax breaks for immigrants and their families. Mixed-status families, where some members are undocumented immigrants, could face challenges in accessing various tax benefits under the proposed bill.

Another contentious aspect of the bill is the proposed tax on remittances, which are money transfers sent abroad by immigrants. The House and Senate versions of the bill would impose a 3.5% tax on remittances, potentially adding to the financial burden on immigrant households.

Furthermore, the bill introduces new fees for immigrants applying for asylum and other immigration services. These fees, which include a $1,000 application fee for asylum and additional charges for work authorization and Temporary Protected Status, could further strain the financial resources of immigrant families seeking protection in the U.S.

Overall, the Republican megabill presents significant challenges for immigrant households, both in terms of access to tax benefits and financial stability. As lawmakers continue to debate the specifics of the legislation, immigrant communities are left grappling with the uncertainty and potential repercussions of these proposed measures.

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