Trump Administration Restricts Banking Access for Unauthorized Immigrants

The Trump administration implemented new measures to restrict the ability of individuals living illegally in the United States to access the banking system. On July 13, 2026, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the National Credit Union Administration issued joint guidance directing financial institutions to evaluate the credit risk of borrowers lacking legal work authorization.

The regulators advised lenders to treat these borrowers as an elevated credit risk, citing the possibility that job loss or deportation could prevent loan repayment. While the guidance does not legally ban lending to noncitizens, it encourages a rigorous assessment of the ability to repay and warns of difficulties in locating borrowers or repossessing collateral. This policy specifically impacts the market for Individual Taxpayer Identification Number (ITIN) loans and reverses a Biden administration position that urged lenders to ignore immigration status.

These actions follow Executive Order 14406, signed by President Donald Trump on May 19, 2026, and a separate May directive aimed at utilizing the banking system to support mass deportation efforts. Complementary measures include a June advisory from the Financial Crimes Enforcement Network regarding money laundering and identity theft, as well as a November Treasury Department decision to reclassify certain refundable tax credits as federal public benefits, restricting access for DACA and Temporary Protected Status recipients.