The U.S. Department of the Treasury sanctioned an Iran-linked shipping network on October 21, 2026. This action was accompanied by the issuance of new general licenses concerning Iran and Russia.

Sanctions and licensing actions

The Office of Foreign Assets Control (OFAC) implemented these measures to address specific regulatory concerns. The dual approach involves restricting certain entities while providing new licensing frameworks for transactions involving Iran and Russia.

Regulatory context

These actions reflect ongoing adjustments to U.S. foreign policy enforcement mechanisms. The simultaneous issuance of sanctions and general licenses indicates a targeted calibration of compliance requirements for affected sectors.

The U.S. Department of the Treasury and Internal Revenue Service (IRS) proposed rules Wednesday to restrict access to the refunded portion of certain federal tax credits for immigrants who do not meet federal eligibility requirements.

The agencies clarified that the refunded portion of four refundable tax credits constitutes a federal public benefit under the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA). Treasury Secretary Scott Bessent stated that the regulations would enforce federal law to prevent illegal aliens from collecting taxpayer-funded benefits. IRS Chief Executive Officer Frank J. Bisignano added that the move ensures federally funded benefits are reserved for eligible taxpayers.

Affected Tax Credits

The proposal applies to the following credits:

• Adoption tax credit
• Child tax credit
• American opportunity tax credit
• Earned income tax credit (EITC)

Under PRWORA, U.S. citizens, U.S. nationals, and qualified aliens are eligible for federal public benefits. Qualified aliens include lawful permanent residents, asylees, refugees, and certain other groups defined under the act. The Treasury and IRS cited legal analysis from the Department of Justice’s Office of Legal Counsel concluding that the refunded portions of these credits are federal public benefits.

To receive the refunded portion, a taxpayer must be a U.S. citizen, U.S. national, or qualified alien when filing the federal income tax return first claiming the credit. The taxpayer must also declare eligibility under penalty of perjury. For joint tax returns, only one spouse needs to meet the citizenship, nationality, or qualified-alien requirement.

Impact on Taxpayers

The proposal applies only to the refunded portion of the affected credits, which is the amount exceeding a taxpayer’s federal income tax liability. A taxpayer who does not qualify for the refunded portion may still claim any part of an affected credit for which they otherwise qualify to reduce their federal income tax liability.

Tax expert Margot Crandall-Hollick, a principal research associate at the Urban-Brookings Tax Policy Center, noted that the proposal could affect many noncitizens who have Social Security numbers and work authorization. She stated that the policy could have the greatest impact on lower-income households because they generally have smaller tax liabilities and therefore receive more of the tax break as a refund.

Broader Regulatory Context

This proposal follows earlier moves by the Trump administration to restrict access to federal benefits for people who do not meet certain immigration requirements. In December, Bessent stated that Treasury was working on regulations to restrict certain tax credits and other federal benefits for illegal and other non-qualified aliens. The administration has also taken steps involving access to the U.S. financial system for noncitizens.

The proposed regulations would apply to tax years ending on or after the date the regulations are published as final regulations. The agencies will seek public comments and requests for a public hearing on the proposal.