Trump signed an executive order using the financial system as a tool against illegal immigration.
President Donald Trump directed the Treasury Department and federal banking regulators to tighten customer identification and due-diligence requirements for immigrants without legal status. The order targets what the administration calls financial and credit risks tied to what it describes as the “inadmissible and removable alien population.”
The order puts specific financial behaviors under increased scrutiny, including payroll tax evasion, off-the-books wages, suspect identity documents, and the use of Individual Taxpayer Identification Numbers to open accounts or obtain credit without verified legal status.
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According to a report, federal regulators have advised banks and credit unions that borrowers without work authorization may represent elevated credit risks, since their employment, income, and ability to repay loans could be disrupted at any point.
Deputy White House Chief of Staff Stephen Miller described the broader purpose of the effort. Rather than relying solely on Immigration and Customs Enforcement detentions and formal deportations, Miller said the goal is to pressure illegal immigrants to leave voluntarily. “Illegal aliens have credit cards, they have bank accounts and they’re paid with direct deposit,” Miller said. “Shutting that down is a massive engine for deportation.”
The Treasury Department’s Financial Crimes Enforcement Network has also issued guidance directing financial institutions to monitor for illicit activity connected to unauthorized employment. That includes identity theft, payroll schemes, and cash flows potentially linked to criminal organizations.
The order does not impose a blanket ban on bank accounts for people without legal status. It instructs regulators and financial institutions to increase scrutiny and weigh immigration and work-authorization status when financial or credit risks make it relevant.
A report published by the Federation for American Immigration Reform in July 2026 backed Miller’s assessment. The report argued that restricting banking access will accelerate self-deportation, reducing the number of people ICE must formally remove and saving taxpayer money in the process. The report’s author also contended that dismantling the financial infrastructure supporting unauthorized workers would weaken the shadow economy that draws many illegal immigrants across the border in the first place, while also helping banks limit their own exposure to financial losses.
