A. M. The U.S. House of Representatives, dominated by the Republican party, approved the tax plan promoted by President Donald Trump, which includes a controversial 3.5% tax on remittances sent from U.S. territory. Although a 5% tax was initially proposed, the percentage was reduced after intense internal negotiations. The bill now heads to the Senate, where it will face a tough legislative battle for final approval.
The tax measure would directly affect immigrants who send money to their countries of origin, including those who have permanent residency, work visas or any type of immigration protection. U.S. citizens would be exempt from the tax. The proposal has generated concern among migrant organizations and receiving countries, as it is detrimental to millions of families who depend on this income.
According to the Inter-American Development Bank, in 2024 remittances sent from the U.S. to Latin America and the Caribbean will reach US$160.9 billion, an increase of US$7.7 billion over the previous year. This flow of money has become a vital source of income for numerous economies in the region, especially in countries that are highly dependent on these resources.
El Salvador, for example, received remittances equivalent to 24% of its gross domestic product in 2024. In Guatemala, they represented 20%, in Honduras 26% and in Nicaragua up to 27%. This income is essential to cover basic needs in millions of households, alleviate poverty and sustain domestic consumption in contexts of economic fragility.
If this tax is approved in the Senate, the receiving countries could face a significant impact on their economies and on the welfare of migrant families. Analysts warn that the measure could reduce the volume of remittances and encourage the use of informal remittance channels, with negative consequences for both governments and the direct beneficiaries of these funds.
