OBBBA Loopholes Allow Illegal Aliens to Receive Benefits

One major set of policies Republicans touted in their One Big Beautiful Bill (now officially Public Law 119-21, signed on July 4, 2025) sought to end government benefit payments to illegal aliens. But while the new law advances that agenda, such as by preventing illegal alien parents from receiving federal Child Tax Credit (CTC) payments, it also creates a new loophole and leaves untouched another allowing welfare checks to flow to households headed by illegal alien parents. If the Trump administration wants to fully end benefit payments to illegal aliens, it will have to close those loopholes, too.


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