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U.S. Tightens Immigration Safety Net: DHS Seeks Broader ‘Public Charge’ Standard as Treasury Targets Refundable Tax Credits

Both measures now face public comment followed by legal review before a potential fiscal 2026 start.

Overview

  • DHS published a proposal to rescind the 2022 rule and restore wider discretion to deny permanent residence based on use of means‑tested benefits, including Medicaid, SNAP and housing assistance, considering past, current or expected use.
  • The public‑charge proposal appears in the Federal Register with a 30‑day comment window before DHS decides whether to finalize, modify or withdraw it.
  • Treasury announced plans to treat certain refundable credits as federal public benefits—covering the Earned Income Tax Credit, Additional Child Tax Credit, American Opportunity Tax Credit and Saver’s Credit—a move critics say clashes with tax code provisions and could deter eligible families.
  • Treasury has requested a Justice Department legal analysis and signaled final regulations could take effect in fiscal year 2026, with reporting noting that DACA recipients, people with Temporary Protected Status and some visa holders could be affected depending on the final text.
  • Separately, USCIS has tightened adjudication practices and increased coordination with ICE, raising the risk of application denials and referrals to removal proceedings for errors or inconsistencies.