Under the Trump administration, Americans with green cards are waking up to some unpleasant surprises. Green card holders are lawful permanent US residents and are authorized to live and work permanently in the United States.

However, green card holders are expected to face difficult times ahead. From getting small business loans to risking entry into the US after remaining overseas to possibly facing the possibility of losing US citizenship after naturalization, the risks for green card holders are growing.

Green card holders will not be able to qualify for U.S. Small Business Administration loans under a new rule from President Donald Trump’s administration, and only citizen-owned enterprises will be eligible for SBA loans. Earlier, a narrow exception allowed a borrower to have up to 5% ownership held by foreign nationals; however, now to avail SBA loans, 100% of all direct or indirect owners of a small business applicant have to be U.S. citizens.

Green card holders returning to the US are also facing scrutiny and even denial of entry after foreign travel. The Permanent Resident Card becomes technically invalid for reentry into the United States if Green card holders are absent from the United States for 1 year or more.

Green card holders traveling abroad should be aware of US reentry regulations to avoid denial of entry or accusations of abandoning residency. Lawful permanent residents (LPRs) who are outside the US for a year or more risk losing their status unless they obtain reentry permission using Form I-131.

Further, the Trump administration has directed US enforcement authorities to revoke the lawful permanent resident (LPR) status of immigrants or impose fines for non-compliance with the law. Under law, a green card holder or a permanent resident age 18 or older is required to have a valid Green Card in their possession at all times.

Section 264(e) of the Immigration and Nationality Act requires every alien 18 years of age and over to carry with them and have in their personal possession their evidence of registration document, such as Form I-94, a valid EAD card, or green card at all times, including when traveling domestically or just going about daily life. A failure to carry a green card in person may result in a fine or penalty not exceeding $100 or be, imprisonment for not more than thirty days, or both.

Green card holders can become US citizens through Naturalization, but they risk losing their citizenship. The US government, particularly the Department of Justice, is focusing on revoking citizenship for certain individuals.

Underreporting income on a tax return may also result in losing US citizenship. Green card holders who are now American citizens face potential risks of losing their citizenship, as the US Department of Justice emphasizes denaturalization efforts. There have been instances where the government requested courts to revoke citizenship, notably in a case involving a citizen who pleaded guilty to filing a false tax return.

Further, the US will now require lawful permanent residents to undergo ‘neighbourhood investigations’ before obtaining citizenship, which will involve testimonial letters from neighbours, employers, co-workers, and business associates. Also, spouses of green card holders are being scrutinized more closely during adjustment-of-status and consular interviews, necessitating more detailed questioning.

Finally, the US Citizenship and Immigration Services (USCIS) has implemented the 2025 Naturalization Civics Test for green card holders seeking U.S. citizenship starting October 20, 2025. This new test will pose greater challenges, including a higher number of questions that require a deeper understanding of American history, government, and politics. However, applicants who have applied for Naturalization before this date will still have the option to take the older 2008 version of the test.

Overall, Green card holders in the US are facing sweeping changes under Trump-era policies, including ban on SBA loans, stricter reentry rules after foreign travel, expanded compliance checks, tougher naturalization requirements, and rising denaturalization risks—signaling a more challenging immigration landscape for lawful permanent residents.