President Trump announced a new powerful executive order. It directs Treasury Secretary Scott Bessent to shut down bank accounts that facilitate illegal immigration or give illegal aliens welfare.
Trump announced the order on Truth Social. He said it targets the banks, credit card companies, and other financial institutions. Criminals use them to move money tied to human smuggling, drug trafficking, illegal immigration, and cartels.
“Illegal Immigrants and Foreign Fraudsters steal BILLIONS every year from the American Taxpayer.” posted President Donald Trump, Truth Social, June 2.
Under the order, Trump said, accounts used to support illegal immigration or to hold government benefits paid to undocumented immigrants could be closed, seized, or forfeited.
“Bank Accounts being used to enable Illegal Immigration, or to store the Welfare received by Illegal Aliens, will be shut down.”
It’s a national security risk.
“Funds will ultimately face Impoundment and Seizure so they can to be returned to Taxpayers.” “It is not ludicrous, but profoundly dangerous, that any Illegal Alien can simply present a Blue State Drivers License, or Biden Border Document, and have unrestricted access to the U.S. Financial System.”
The measure will stop billions of dollars from flowing out of the United States through criminal networks. It will also stop welfare to illegal aliens.
Context
The White House and Treasury say criminal organizations run their money through the U.S. financial system to move and hide illicit funds. The new order tries to cut off that access at the bank level.
In March, the department sanctioned a Sinaloa Cartel-affiliated money laundering network. They said traffickers converted fentanyl proceeds into cryptocurrency before routing the funds to cartel operators.
“Treasury will continue to target terrorist cartels and their fentanyl trafficking networks.” said Treasury Secretary Scott Bessent in March 2026.
The scale of the broader problem is large. Treasury and law enforcement have pointed to Chinese money laundering networks. They reportedly moved more than $312 billion through U.S.-based accounts.