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immigration hub
ICE-IRS Deal Blasted as 'Bad Policy. Bad Economics. And Cruel.'
"The administration is shattering what little trust remains between immigrant communities and the government and putting critical revenue streams at risk," said one critic.
Apr 08, 2025
Migrant and privacy rights advocates this week are sounding the alarm over a deal signed by Treasury Secretary Scott Bessent and Homeland Security Secretary Kristi Noem to hand sensitive taxpayer data over to immigration authorities as part of U.S. President Donald Trump's mass deportation effort.
The Internal Revenue Service (IRS) and the Immigration and Customs Enforcement (ICE) have entered into a memorandum of understanding (MOU) "to establish a clear and secure process to support law enforcement's efforts to combat illegal immigration," a Treasury Department spokesperson told Fox News, which reported on the development after a late Monday court filing.
"The bases for this MOU are founded in long-standing authorities granted by Congress, which serve to protect the privacy of law-abiding Americans while streamlining the ability to pursue criminals," the spokesperson said. "After four years of [former President] Joe Biden flooding the nation with illegal aliens, President Trump's highest priority is to ensure the safety of the American people."
After weeks of warnings about a potential data transfer deal, it was revealed as part of a legal case brought by Centro de Trabajadores Unidos, Immigrant Solidarity DuPage, Inclusive Action for the City, and Somos Un Pueblo Unido, which are represented by Alan Morrison, Public Citizen Litigation Group, and Raise the Floor Alliance.
"Taxpayer privacy is a cornerstone of the U.S. tax system," Public Citizen co-president Lisa Gilbert said in a Tuesday statement. "This move by the IRS is an unprecedented breach of taxpayer privacy laws and confidentiality, which has been respected by both political parties for decades."
"The Trump administration's terror tactic of using immigrants' tax data against them will drive some of our most vulnerable communities further underground," she warned. "If this taxpayer information isn't safe from the prying eyes of the Trump administration's goons, then no one's taxpayer information is safe."
Juliette Kayyem, a former Department of Homeland Security official now lecturing at the Harvard Kennedy School, wrote on social media: "Bad policy. Bad economics. And cruel. They are so desperate to get their deportation numbers up that they are doing this."
Multiple members of Congress also blasted the move. Rep. Jimmy Gomez (D-Calif.) said that "the IRS should NEVER be weaponized to target immigrant families. This backdoor deal with ICE shatters decades of trust—and may be illegal."
"I will fight this with everything I've got," vowed Gomez, a member of the House Ways and Means Committee. "No one should fear that filing taxes puts their family at risk."
Congressman Joaquin Castro (D-Texas) was among the critics who emphasized that the MOU doesn't just affect migrants.
"First things first: The impact of folks not filing their taxes because they are afraid of deportation would be detrimental to our economy," he explained. "Two: Immigrants pay taxes but do not benefit from the social programs that most taxpayers do. Three: Everyone should be concerned about the privacy implications here. This sets the precedent that the federal government can arbitrarily share your personal information with law enforcement. And it's just wrong."
Rep. Juan Vargas (D-Calif.) similarly said: "For decades, undocumented immigrants have trusted the IRS when it encouraged them to file. They've paid taxes in good faith, contributing nearly $100 BILLION per year and supporting social services they can't even access. Not only is this a total betrayal, but it's also illegal. We'll fight this."
The Institute on Taxation and Economic Policy also highlighted that "turning the IRS away from its job (collecting taxes) to instead focus on mass deportation efforts will mean less tax revenue collected on top of the harm done to families and communities affected by deportations."
In response to The New York Times' reporting on the deal, American Immigration Council senior fellow Aaron Reichlin-Melnick pointed out on social media that the MOU "is, on its face, limited to criminal investigations (not deportation investigations)."
"There are many questions raised about this new [agreement], which seems to violate previous understandings of the laws requiring IRS not to share taxpayer information," he continued. "But at its heart it does not seem that the MOU permits ICE to ask for taxpayer data for deportation reasons."
"It seems primarily to be aimed at criminal investigations for willful failure to depart after the issuance of a removal order, a crime on the books which (until now) is virtually never prosecuted," Reichlin-Melnick added. "Despite the fact that this MOU is limited only to criminal law enforcement, it will likely have a chilling effect on undocumented taxpayers."
How the Trump administration actually proceeds remains to be seen. The court filing says no information has been shared between the agenices yet—but the deal comes as part of a wave of anti-immigrant policies and rhetoric from the president and his officials.
"With the Supreme Court greenlighting Trump's use of the Alien Enemies Act and the administration now gaining access to sensitive IRS data, we continue to slip into a new era of authoritarianism in America," Beatriz Lopez, co-executive director of the Immigration Hub, said a Tuesday statement "The digital and physical dragnets that Trump is building mean millions of immigrants—many of whom have followed the law and paid their taxes for decades—are now vulnerable to indiscriminate brutality and quiet erasure with little opportunity for redress."
Lopez stressed that "undocumented immigrants already contribute billions to our economy—often paying a higher effective tax rate than 55 major corporations and some of the wealthiest individuals in America. By weaponizing private taxpayer data, the administration is shattering what little trust remains between immigrant communities and the government and putting critical revenue streams at risk."
"Coupled with Trump's xenophobic tariff threats and a $350 billion demand to fund mass disappearances and deportations, this is more than an attack on immigrants—it's a calculated effort to destabilize the country and remake its image," she concluded. "Congress must reject this funding and the authoritarian playbook behind it. This is not policy. It's punishment."
Mercenary Mogul Erik Prince Pitched Trump on Private Deportation Force
"War profiteer Erik Prince, the same man infamous for spreading chaos and profiting off human suffering, is signing up to help carry out Trump's mass deportation and family separation agenda," said one critic.
Feb 25, 2025
Private military contractors including Erik Prince—the founder and ex-CEO of the notorious mercenary firm formerly known as Blackwater—pitched advisers to President Donald Trump a $25 billion plan to deport 12 million undocumented immigrants before the 2026 midterm elections using a "small army" of citizens, a fleet of 100 private planes, and a network of "processing camps," according to Tuesday reporting.
Politico's Dasha Burns and Myah Ward reported that the 26-page blueprint for an aggressive mass deportation campaign, a copy of which was obtained by the journalists, was presented to advisers to Trump before his inauguration. The group of private contractors, who call themselves 2USV, is led by Prince and also includes former Blackwater chief operating officer Bill Mathews.
Burns and Ward wrote:
Deporting 12 million people in two years "would require the government to eject nearly 500,000 illegal aliens per month," the document says. "To keep pace with the Trump deportations, it would require a 600% increase in activity. It is unlikely that the government could swell its internal ranks to keep pace with this demand... in order to process this enormous number of deportations, the government should enlist outside assistance."
Top White House officials are having multiple conversations with military cfontractors, coinciding with Republicans' mad dash on Capitol Hill to secure more resources for the president's immigration crackdown. Immigration and Customs Enforcement (ICE) increased arrests during Trump's first couple of weeks in office, but the pace has since slowed, and arrests do not always equal deportations.
To boost deportations, the 2USV plan calls for deputizing 10,000 private citizens, forming a "skip tracing team" to locate targeted immigrants, a "screening team of 2,000 attorneys and paralegals," a "bounty program which provides a cash reward for each illegal alien held by a state or local law enforcement officer," and "mass deportation hearings." Legal experts warn that components of the plan likely run afoul of the law.
It is unclear whether Trump has seen the 2USV white paper. White House spokesperson Kush Desai told Politico that the Trump administration "remains aligned on and committed to a whole-of-government approach to securing our borders, mass deporting criminal illegal migrants, and enforcing our immigration laws."
Prince, a former U.S. Navy SEAL, founded Blackwater—now called Constellis—in 1997. He rose to prominence during the George W. Bush administration and the so-called War on Terror, in which the U.S. relied heavily upon private contractors.
On September 16, 2007, Blackwater guards
massacred 17 men, women, and children in Nisour Square in Baghdad, Iraq. This was one of at least several incidents in which the company's mercenaries harmed Iraqi civilians. Trump pardoned four of the Nisour Square killers—who had been sentenced to 12 years to life in prison for crimes including first-degree murder—in 2020 shortly before his first term ended.
Trump and Prince have long enjoyed warm relations. Prince was a major Trump donor whose sister, Betsy DeVos, served as education secretary during his first administration. Prince also reportedly helped raise money to spy on progressives and Democratic organizations opposed to Trump, and was involved in former senior Trump adviser Steve Bannon's fraudulent campaign to ostensibly build a wall along the U.S.-Mexican border.
Last year, Venezuelan authorities launched an investigation into an online site allegedly fronted by Prince that raised funds for the ouster of Venezuelan President Nicolas Maduro.
Critics interviewed by Burns and Ward cast doubts on 2USV's plan, with former ICE Chief of Staff Jason P. Houser saying that "the idea of forcibly removing 12 million people from the United States is not just operationally impossible—it is a moral and economic catastrophe in the making."
Responding to the Politico report, Beatriz Lopez, co-executive director of the Immigration Hub, an advocacy group, said in a statement that "war profiteer Erik Prince, the same man infamous for spreading chaos and profiting off human suffering, is signing up to help carry out Trump's mass deportation and family separation agenda."
"Simply put, this despicable plan will deploy mass internment, detention camps, and a civilian army to come after our neighbors, family, and friends," she continued. "At $25 billion, this cruel machinery would merely be the opening act in Trump and [White House Deputy Chief of Staff] Stephen Miller's $350 billion campaign of state-sanctioned 'hunts' for immigrant families."
"We're witnessing the deliberate transformation of everyday Americans—parents dropping children at school, healthcare workers saving lives, farmers feeding our nation—into targets who, if the Trump administration has it their way, could be hunted by an unaccountable militia motivated by profit and prejudice," Lopez added. "As Trump expands the definition of who is 'deportable,' the circle of safety shrinks until it contains only those who share his extreme vision. Today immigrants, tomorrow anyone who opposes them."
"Our leaders face a defining choice: stand against this atrocity now, or be complicit in what history will remember as America's darkest chapter," she warned.
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