The Treasury Department and IRS proposed a rule classifying refundable tax credits—including the Child Tax Credit, Earned Income Tax Credit, Adoption Tax Credit, and American Opportunity Tax Credit—as federal public benefits available only to U.S. citizens and 'qualified aliens.' The change could bar asylum applicants, Temporary Protected Status holders, and DACA recipients from claiming these credits, while permanent residents, asylees, and refugees would remain eligible. Estimates suggest between 200,000 and 700,000 noncitizens could be disqualified, potentially saving the government up to $2.6 billion in 2026. Experts describe the move as part of a broader Trump administration effort to restrict immigrants' access to public benefits.