Congressman Chip Roy introduced the Reducing External Monetary International Transfers to Advance National Capital Efficiency (REMITTANCE) Act on May 21, which would impose a 25 percent tax on all remittances sent by foreign nationals from the United States to their home countries.
The proposal aims to address concerns about the economic impact of money leaving the country through remittances, particularly in relation to immigration and taxpayer-funded services. Supporters say that taxing these transfers will help keep more money within the U.S. economy and reduce incentives for illegal immigration.
Roy said, “The United States economy has dealt with the inextricably linked harmful effects of unchecked legal and illegal immigration and the drain of American dollars leaving the economy through remittances for decades. An estimated $200 billion in remittance payments leaves the U.S. annually to relatives and business associates abroad, while the foreign nationals who send these monies consume more in American taxpayer-subsidized public services than they pay into, enabling unchecked migration and draining our economy of this capital. The REMITTANCE Act builds upon the remittance fee implemented in the One Big Beautiful Bill Act by increasing it to 25%, affirming Congress’s commitment to countering illegal immigration and advancing strong economic policies.”
Rosemary Jenks, Director of Policy at Immigration Accountability Project, said, “American taxpayers are forced to pay billions of dollars of our hard-earned money to support foreigners—both legal and illegal—in the United States. The fact that a significant portion of that money is then sent out of our country in the form of remittances is outrageous. We applaud Rep. Roy for introducing the REMITTANCE Act to tax these funds at 25 percent and prioritize keeping American money in America.”
Joe Chatham, Director of Government Relations at Federation for American Immigration Reform (FAIR), said, “Millions of illegal aliens were welcomed into our country under the Biden administration, driving remittances leaving the United States to at least $200 billion annually. The REMITTANCE Act takes bold strides to curb this outflow, protect American taxpayers, and end exploitation of our laws… FAIR applauds Congressman Roy for taking decisive action… we’re proud to support this bill.” Wade Miller from Citizens for Renewing America added: “Of countless issues illegal immigration impacts on Americans, remittances – cash payments sent by illegal aliens and cartel members – are one most harmful… Each year billions leave instead remaining local economies… Congress should be deploying all tools … Rep. Roy’s REMITTANCE Act can help advance fight on both fronts.”
Roy has served as U.S. Representative for Texas’s 21st District since replacing Lamar Smith in 2019 according to Ballotpedia. In recent elections he won against Kristin Hook (2024), Claudia Zapata (2022), Wendy Davis (2020), and Joseph Kopser (2018) according to Ballotpedia.
Observers say further debate is expected as lawmakers consider potential impacts on immigrant communities as well as broader economic effects.
