The tax bill promoted by former President Donald Trump, known as the “One Big Beautiful Bill,” has sparked growing international concern following its approval by the U.S. House of Representatives. Among its most controversial measures is a proposed 3.5% tax on remittances sent by individuals who are not U.S. citizens, including legal residents and work visa holders.
The measure, which still needs to be debated in the Senate, could take effect on January 1, 2026. It has been described as discriminatory, regressive, and harmful by foreign governments and immigrant rights organizations alike.
The tax would apply to millions of immigrants who send money to their countries of origin, excluding only U.S. citizens. Among those affected would be holders of H-1B, H-2A, and H-2B visas, as well as Temporary Protected Status (TPS) beneficiaries and permanent legal residents.
Currently, the United States is the world’s largest source of remittances. In 2024 alone, residents of the country sent more than $93 billion abroad, according to the World Bank.
International Reaction
Mexico, the leading recipient of U.S. remittances—with more than $65 billion received in 2024—has strongly rejected the proposal. President Claudia Sheinbaum Pardo called the tax “an injustice and a violation of bilateral treaties” and warned that Mexico would continue working through all diplomatic and legislative channels to prevent its implementation.
Central American countries such as Guatemala, Honduras, and El Salvador have also voiced concern, as in some cases, remittances account for more than 20 percent of their GDP. Spokespeople from the Inter-American Development Bank and the International Monetary Fund have also warned about the macroeconomic impact this measure could have on regional stability.
Criticism and Risks
Organizations such as Voto Latino, the Congressional Hispanic Caucus, and various human rights groups have argued that the tax would exacerbate inequality, harming essential workers who already pay taxes in the United States. They also warn that the measure could encourage the use of informal remittance channels, increasing the risk of fraud and exploitation by organized crime.
They have also emphasized that this tax would directly affect more than 40 million people, including legal residents and binational families.
A recent poll by Voto Latino revealed that 72 percent of Latino voters oppose the measure, warning it could have political repercussions in the November 2025 elections, especially in states like Texas, Arizona, and California.
“The proposal aims to fund tax breaks for the wealthy at the expense of the most vulnerable,” said María Teresa Kumar, president of Voto Latino. “This is not fiscal policy—it is political punishment for migrants.”
The tax bill will be discussed in the U.S. Senate in the coming weeks, where a heated debate is expected. Some moderate Republican senators, such as John Cornyn (Texas), have expressed doubts about the measure, while others, like Ted Cruz, have fully supported Trump’s proposal.
Mexico, along with other affected nations, continues to pursue diplomatic and legal efforts to prevent final approval of the tax. Meanwhile, immigrant organizations in the U.S. have called for mobilizations and informational campaigns to demand that the Senate block what they see as a punitive and discriminatory measure.
Mexican Press Agency is part of ALMA, which is dedicated to news and information about Mexico and Mexicans in the United States and is a fiscally sponsored project of Social Focus, a 501(c)(3) nonprofit organization based in Redwood City, California.
