Treasury and IRS just proposed a rule to deny refundable tax credits to up to 700,000 legal immigrant taxpayers.

The evidence supports the core action: multiple reports, including CNBC and Newsweek, describe a Treasury and IRS proposal concerning eligibility for refundable portions of certain tax credits, including the adoption, child, and American Opportunity credits.

The material status claim remains unresolved. The available reporting describes affected groups as illegal or undocumented immigrants, not clearly as lawfully present immigrants. Without the official proposed-rule text and its definitions of covered immigration statuses, the evidence cannot determine whether the proposal applies to the population described in the claim.

The numerical claim is also unsupported. None of the supplied sources provides an estimate that as many as 700,000 lawfully present immigrant taxpayers would be affected, nor explains a methodology or administrative-data analysis for that figure. The proposal appears to have been reported around August 19, 2026, but the claim’s publication date is unavailable, so the timing implied by “just” cannot be assessed precisely. The evidence establishes the existence of a proposal, but not the claim’s population or quantity details.