Trump orders U.S. banks to stop serving undocumented immigrants, confiscate existing accounts

U.S. President Donald Trump said on Tuesday that he signed an executive order authorising the seizure of funds in bank accounts of undocumented migrants and those suspected of aiding illegal immigration.

Mr Trump said in a post on his Truth Social platform that the Treasury Department will implement the directive that blocks credit cards, banks, and financial institutions from “being used for human smuggling, drug trafficking, illegal immigration, and the criminal cartels who orchestrate these activities”.

He accused undocumented migrants of stealing billions of dollars from American taxpayers, describing his “powerful” order as a “historic” effort to combat fraud and massive illegal immigration.

“Bank accounts being used to enable illegal immigration, or to store the welfare received by illegal aliens, will be shut down, and funds will ultimately face impoundment and seizure so they can be returned to taxpayers,” he stated.

He added, “My executive order will also allow us to stop billions in leaving our country in all manner of criminal activity.”

The president maintained that illegal migrants should not have access to the U.S. financial systems.

Mr Trump said it is dangerous for “illegal aliens” to have access to financial services by presenting a driver’s licence issued by Democratic-led states—which allows undocumented migrants to obtain the licence irrespective of their status—and a “Biden border document”.

The president typically refers to the immigration paperwork issued to asylum seekers and migrants during the former President Joe Biden’s administration as the “Biden border document”.

“It is not ludicrous, but profoundly dangerous, that any illegal alien can simply present a blue state driver’s licence, or Biden border document, and have unrestricted access to the U.S. financial system,” he said.

Mr Trump rebuffed criticism of U.S. Immigration and Customs Enforcement, saying protesters’ “violent disruptions” further strengthen his administration’s policies.

He added that his crackdown on immigration has been deemed “the most effective means of reversing Biden’s border invasion”.

Mr Trump frequently uses “Biden’s border invasion” to describe the influx of migrants during Mr Biden’s administration.

Since returning to the White House last year, Mr Trump has moved to limit immigration into the U.S., citing a high rate of visa overstays and identity fraud, among other issues.

On October 30, 2025, the president also announced that refugee admissions would be capped at 7,500—the lowest level since 1980—for 2026, which runs from October 2025 to September 2026.

Mr Trump reduced the number of refugees to 7,500 from over 100,000 admitted under Mr Biden.