The Trump administration has signaled a new and far-reaching approach to public assistance oversight, with potential ripple effects for immigrant communities, including Liberians living in the United States who regularly support families back home through remittances.
U.S. Treasury Secretary Scott Bessent, speaking during a recent appearance on the Human Events podcast, announced that the federal government intends to block overseas money transfers by individuals receiving public assistance, framing the move as part of a broader effort to protect taxpayer funds and combat welfare fraud.
“For individuals who want to wire money out of the country, they’re going to have to indicate whether or not they are on public assistance,” Bessent said. “And if you are on public assistance, you cannot wire money out of the country.”
Policy Framed Under Trump’s Welfare Scorecard
The warning aligns closely with President Donald Trump’s newly unveiled welfare scorecard, which evaluates federal and state social programs based on fraud prevention, fiscal discipline, and perceived misuse of benefits. The administration has repeatedly argued that public assistance should be strictly limited to meeting domestic needs, not enabling overseas financial transfers.
Bessent suggested that any ability to send money abroad while receiving aid raises serious red flags.
“If you’re wiring money out of the country and you’re on public assistance, it means one of two things,” he said. “Either you’re receiving more assistance than you actually need, or the money is stolen.”
He further argued that U.S. taxpayers did not intend for welfare funds to support individuals or organizations outside American borders, citing ongoing federal investigations into welfare fraud in Minnesota as justification for tighter controls.
Liberia and the Remittance Question
The announcement is being closely watched in Liberia, where remittances from the United States play a critical role in household survival, education, healthcare, and small-scale entrepreneurship. Thousands of Liberian families depend on monthly transfers from relatives working low-wage jobs in America, some of whom may also receive limited public assistance.
While the Treasury Department has clarified that benefits such as SNAP cannot be wired abroad, critics note that the policy effectively scrutinizes how poor individuals use their private wages, not just government benefits. Under the administration’s logic, any surplus income capable of being sent overseas suggests excessive assistance.
For Liberians, this raises concerns about whether law-abiding migrants who supplement low incomes with public aid could face barriers or heightened surveillance when supporting relatives back home.
Treasury Clarifies: Proof of Legal Funds Is Key
In comments later made to Reuters, Bessent sought to ease fears, insisting that legitimate remittances would not be blocked if senders can demonstrate the lawful origin of their funds.
“Anyone who can prove where the money has come from is fine,” he said, adding that legally employed immigrants typically use regulated banking channels.
The Treasury confirmed that its Financial Crimes Enforcement Network (FinCEN) has issued a geographic order increasing scrutiny of international transfers from parts of Minnesota, requiring additional reporting for transactions above $3,000. Some banks and money service businesses are also being audited amid allegations of large-scale benefits fraud.
Criticism, Surveillance Fears, and Unequal Application
Despite these assurances, the policy has sparked criticism from economists, journalists, and civil liberties advocates, who argue that the approach resembles capital controls applied selectively to low-income groups.
Critics have questioned why similar scrutiny is rarely applied to corporate welfare recipients or multinational firms that move billions of dollars offshore while benefiting from U.S. tax incentives and subsidies.
Others warn that restricting financial autonomy for the poor could push money flows into less regulated channels, including cryptocurrencies, especially as the Trump administration simultaneously reduces crypto oversight, despite longstanding concerns about its use by criminal networks.
A Broader Signal from Washington
For Liberia and other remittance-dependent countries, the debate highlights a growing tension between U.S. domestic welfare enforcement and global financial realities. While Washington insists the policy targets fraud, the broader impact may fall on families abroad who rely on small, regular transfers for basic survival.
As the Trump administration presses forward with its welfare scorecard and enforcement agenda, immigrant communities, and the countries tied to them, are bracing for changes that could reshape how money moves across borders, and who is allowed to send it.
Source: Reuters
