Trump’s Tax on Migrant Remittances Faces Global Backlash

Approved by the House, a 3.5% tax on non-citizen money transfers could disrupt rural economies and push remittances into unregulated channels.

WASHINGTON — A newly passed tax on remittances sent by undocumented migrants from the United States is generating political blowback at home and abroad, as experts warn of economic hardship for families in Latin America and a likely surge in informal money transfers.

The measure, included in a sweeping tax package (One Big Beautiful Bill) backed by President Donald Trump and approved by the House last week, imposes a 3.5% levy on cross-border remittances made by individuals who are not U.S. citizens or nationals. The Senate is expected to take up the legislation in the coming weeks, where Trump’s party holds the majority.