NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

President Trump’s “big, beautiful bill,” which has passed the House of Representatives, includes a 3.5 percent tax on remittances, money migrants send home to family and friends. The tax will apply to an estimated 40 million non-US citizens—green card holders, temporary workers, and undocumented immigrants—and will affect millions more. Remittances are a crucial source of household income and economic stability for low- and middle-income countries. Indeed, for many of these countries, the impact of the remittance tax will far outweigh the impact of aid cuts.

Photo courtesy of Julio Lopez.