The Trump administration is implementing a policy designed to deny undocumented immigrants access to banking services and credit cards, a move intended to incentivize self-deportation, according to White House deputy chief of staff Stephen Miller.
Miller stated in a recent interview that President Trump signed an executive order aimed at preventing illegal immigrants from utilizing U.S. financial systems. "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 executive order, signed in May, directs banks and federal regulators to increase scrutiny of accounts and credit applications associated with individuals lacking legal status or work authorization in the United States. While not explicitly ordering banks to deny services, the directive could significantly complicate financial participation for this group.
Federal agencies have begun to act on the order. In early June, the Consumer Financial Protection Bureau issued guidance indicating that lenders may, and in some instances must, consider an applicant's immigration status and work authorization when evaluating loan repayment ability. Furthermore, guidance issued in mid-July by three federal agencies reminded supervised financial institutions to adhere to existing credit risk management practices when extending credit to individuals not legally authorized to work in the U.S., framing undocumented immigrants as potentially higher-risk customers.