The current reality in the United States has led to disruptions in many key areas. For example, Immigration and Customs Enforcement (ICE) has intervened in remittance transfers. Why?
It turns out that in some countries, including several in Central America, remittances have skyrocketed. However, in Mexico, the frequency of money transfers has decreased.
From January to July alone, remittances in Guatemala increased by 20%. In Honduras, they rose by 25%. Meanwhile, remittances to Nicaragua increased by 22%, and remittances to Haiti increased by 27%.
Reality shows that economic patterns change in the case of some migrants who send money to their families, but are detained by ICE. This is a completely natural occurrence.
Essentially, the priority is to raise money to cover legal expenses in an attempt to regularize their immigration status. Of course, the consequence is that they send less money abroad or less frequently.
Possible tax on remittances
On this subject, let's remember that last July, President Donald Trump signed into law the One Big Beautiful Bill. Among other measures, it includes imposing a fee on remittances.
As soon as it passed the House of Representatives, senators voted on several amendments, including one on the remittance tax. After the changes, the bill returned to the House of Representatives. Representatives for its approval and it was subsequently signed into law by Trump.
Initially, a 5% tax on the amount of any remittance transfer was proposed. Later, it was lowered to 3.5%, and finally, the tax was set at 1% for anyone sending money abroad. This includes certain US citizens who send remittances.
With the 1% tax, sending $500.00 USD would require an extra $5.00 USD. This would be in addition to the fees charged by financial money transfer companies, such as Western Union.
Finally, it's official: the remittance tax will go into effect on January 1, 2026.