Can Undocumented Immigrants Receive Reimbursement For Daycare?

Most immigrants living illegally in the U.S. are not eligible for federal benefits due to a valid Social Security number required for most federal benefits. This means that most immigrants, including those who have received a green card as a legal resident, are not receiving the child tax credit, even after the law was changed to make them eligible for the first time. Undocumented immigrants are largely ineligible for federal healthcare programs like Medicaid and Medicare and are ineligible for most federal tax credits.

Under current law, receiving the Child Tax Credit or other Federal tax credits will not affect an individual’s immigration status or their ability to get a green card. The credits currently amount to $1,000 per child and are “refundable”, meaning parents may receive refunds even when they do not owe any tax. On April 30, 2024, the Biden administration published its own final regulations governing the care of unaccompanied children in the Department of Education.

In New York City, Mayor Eric Adams announced that low-income, undocumented families will be eligible for childcare vouchers. Child care providers will be reimbursed by community organizations overseeing the program. Undocumented immigrants and immigrants without permanent status, such as DACA recipients, TPS holders, or nonimmigrant visa holders, are barred from access to most federal welfare benefits. To claim tax credits, undocumented immigrants must file a federal income tax return using their ITINs. Claiming the EITC or CTC does not cause any “public charge” problems for immigrant workers, and receiving these refunds is not considered an indication that they are entitled to the Child Tax Credit (CTC).