Trump Administration Advances Plan to Restrict Banking

The Trump administration is moving forward with an effort aimed at limiting access to the U.S. banking system for immigrants who are in the country illegally, with Deputy Chief of Staff Stephen Miller saying the policy is intended to encourage self-deportation.

During a recent interview, Miller said undocumented immigrants often rely on bank accounts, credit cards and direct deposit to live and work in the United States. He argued that restricting access to those financial services would make it significantly more difficult for people without legal status to remain in the country.

Treasury Secretary Scott Bessent and federal banking regulators have already begun implementing parts of that strategy. Earlier this year, President Donald Trump signed an executive order directing federal agencies to identify ways the financial system could be used to combat illegal immigration.

More recently, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation and the National Credit Union Administration issued guidance warning banks that loans to individuals who are not legally authorized to work in the United States may carry greater repayment risks because of potential job loss or deportation. The guidance does not create new legal requirements but encourages financial institutions to consider those risks when making lending decisions.

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According to Miller, administration officials also plan to meet directly with financial institutions as part of a broader effort to reduce undocumented immigrants’ access to the banking system.

At this stage, however, the federal government has not announced a blanket order requiring banks to close existing checking or savings accounts belonging to undocumented immigrants. Instead, the administration is using executive actions, regulatory guidance and enforcement priorities to increase scrutiny of financial services involving people who are not legally authorized to work in the United States.

Also reported by: Fox News, via AOL.