Republican megabill restricts finances for immigrant households, imposing taxes and fees

From CNBC: 2025-06-26 13:10:00

Senate Majority Leader John Thune (R-SD) is pushing a Republican megabill that aims to restrict finances for immigrant households, including those legally in the U.S. The bill includes provisions such as limiting access to tax benefits like the child tax credit, imposing a tax on remittances, and adding a $1,000 fee for asylum seekers.

The House bill, championed by President Donald Trump, is designed to make immigration services “self-sustaining” by enforcing immigration laws and implementing responsible fiscal policy. The bill, a centerpiece of tax cuts, largely benefits wealthy households. The legislation is still evolving and may face challenges in restricting benefits as desired.

The proposed legislation would impact access to the child tax credit by restricting it for children without a Social Security number. The House and Senate would make this provision permanent, impacting an estimated 1 million children. The House bill is stricter in its language than the Senate, potentially affecting about 4.5 million children with Social Security numbers.

Republicans are proposing a tax on remittances, which are money transfers sent abroad. The U.S. is the largest source of global remittances, according to World Bank data. The House and Senate bills would impose a 3.5% tax on remittances, in addition to existing fees charged by money transfer services.

The House and Senate bills would introduce new fees for immigrants interacting with the U.S. immigration system, including a $1,000 application fee for asylum and additional fees for work authorization and Temporary Protected Status. The legislation also includes a $5,000 fee for those apprehended between ports of entry.

Read more: How Republican ‘one big beautiful bill’ targets immigrant finances