How the Republican Megabill Targets Immigrant Finances in 2025

As Republicans push forward with a sweeping megabill in Congress, immigration advocates and economists are raising alarms about its potentially harsh financial impact on immigrant households—both undocumented and those legally residing in the U.S.

The proposed legislation, championed by former President Donald Trump, includes measures that would restrict access to key tax benefits, impose new financial burdens, and tighten access to public services. Among the most controversial provisions:

• Denying or limiting child tax credits to immigrant families

• Imposing a tax on remittances, the money immigrants send to their families abroad

• Charging a $1,000 fee for asylum seekers

“These measures make life harder for immigrants in the U.S., both legal and undocumented,” said Tara Watson, director at the Center for Economic Security and Opportunity at the Brookings Institution. “This will make a significant difference in their financial lives.”

Republican lawmakers argue that some of these financial constraints are meant to make immigration services more “self-sustaining.” In a statement, the House Judiciary Committee, led by Rep. Jim Jordan (R-Ohio), said the bill focuses on enforcing immigration laws while implementing "responsible fiscal policy."

But critics point out that the cuts appear targeted and punitive. At the same time the GOP proposes reducing safety net programs for immigrants, the broader bill includes trillions in tax cuts—primarily benefiting wealthy Americans, according to policy data.

Adding to the complexity is the Trump-aligned push for stricter immigration enforcement, including aggressive deportation plans, making the financial pressure part of a broader crackdown.

The bill is still under negotiation, with differences between House and Senate versions. Some provisions have already been struck down. The Senate parliamentarian recently ruled that Republican efforts to curb immigrant access to food assistance (like SNAP, formerly known as food stamps) and healthcare (Medicaid, Medicare, and ACA subsidies) violate procedural rules and must be removed from the final legislation.

Despite these setbacks, Republican lawmakers continue to seek ways to tighten benefits for immigrants. Whether they adjust the bill to comply with legal rulings or find workarounds remains to be seen, with the Senate possibly voting on its version of the bill as soon as this week.

As the megabill evolves, one thing is clear: for many immigrant families, it could reshape financial stability and access to support in the U.S. for years to come.