House Republicans approved a 3.5% tax on remittances that immigrants send to their families abroad.
The original plan was for 5%, but pressure from financial companies and several governments led to a reduction in the proposal, which, if approved by the Senate, will deal a blow to immigrants’ finances.
The plan aims to target undocumented immigrants but will also affect others with visas and even Green Card holders, as the only exception is for those who are U.S. citizens, whether born or naturalized.
During the House session this Wednesday, Democratic Representative Jesús “Chuy” García (Illinois) expressly opposed the tax.
“I rise to oppose the double tax on remittances imposed by the Trump Administration, part of a broader war against working-class immigrants that punishes those who contribute the most to our national economy,” he said.
He noted that this will affect families in Mexico, Nigeria, and the Philippines, among other countries.
Previously, García and Representative Adriano Espaillat (New York), chair of the Congressional Hispanic Caucus (CHC), met with a delegation of Mexican politicians led by Mexico’s ambassador to the U.S., Esteban Moctezuma Barragán.
The impact of the remittance tax would be global, as the annual report from the Inter-American Development Bank’s Migration Department states that in 2024, the total volume of remittances from the U.S. to Latin America and the Caribbean was $160.9 billion.
The largest recipients are Mexico with $64.7 billion and Guatemala with $21.5 billion.
image: Opinion
