The federal government will soon require U.S. banks to consider the citizenship of customers, the latest move in the Trump administration’s efforts to impose financial restrictions and digitally track illegal immigrants in the United States.
President Donald Trump signed an executive order this week that adds to the long list of actions the White House and federal agencies have taken in his second term to make immigration enforcement a whole-of-government effort, not just limited to the Department of Homeland Security.
Trump’s latest action requires banks to report payroll tax evasion, suspected shell companies, and the unverified use of an Individual Taxpayer Identification Number. ITINs are nine-digit tax processing numbers that the IRS issues to foreigners to file taxes.
It also directed the Treasury Department and bank regulators to look for indicators that illegal immigrants are using bank accounts, loans, or credit cards with major financial institutions in the U.S. The plan will take effect in 90 days.
The White House touted the plan as a way to avoid putting the financial system at risk by extending credit or financial services to the “inadmissible and removable alien population.”
Unlike in Trump’s first term, the White House has chosen this time around to make life uncomfortable for people who illegally entered the U.S. and are allowed to reside in the country during immigration court proceedings or are illegally living in the country.
Last year’s One Big Beautiful Bill Act blocked the large majority of illegal immigrants from accessing any public benefits, including health insurance and food stamps. The bill also blocked illegal immigrants with U.S. citizen children from being eligible for the annual child tax credit, worth up to $2,200 per child in 2026.
The Treasury Department took it further and reclassified refundable tax credits as “federal public benefits,” a move that prevents anyone who does not have a Social Security number from receiving that money.
Although people paroled into the country or awaiting an immigration court date may have temporary status to be present in the country, they do not have Social Security numbers.
Last May, a federal court approved the use of a data-sharing system between DHS and the IRS, allowing Immigration and Customs Enforcement to use tax filing records, including personal information on those records, in its efforts to locate and arrest illegal immigrants.
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The Trump administration is also pushing to offer federal grants to states that give it access to state-run Department of Motor Vehicles and voter registration databases.
The State Department announced last year that it was using artificial intelligence to screen immigrant and visa applications against social media websites in an effort to determine if applicants had espoused anti-American or pro-terrorist views.
