House Republicans Propose New Tax on Remittances
On Monday, House Republicans introduced a law proposing a 5% tax on money transfers from undocumented migrants to individuals outside the United States.
The legislation, part of President Donald Trump’s “Big and Beautiful” Bill, specifies that remittances sent by verified U.S. citizens are exempt from this tax. Additionally, taxpayers holding valid Social Security numbers may receive a refundable tax credit for any excise taxes paid.
Breitbart News has highlighted for years how immigrants—both legal and illegal—send substantial amounts of money back to their home countries, amounting to hundreds of billions annually.
In 2023, Sen. JD Vance (R-OH) and Rep. Kevin Hern (R-OK) discussed a proposal for a 10% tax on these remittances. Meanwhile, the Heritage Foundation has suggested a much steeper 50% tax on outbound transfers unless the sender is legally residing in the U.S.
In 2020, immigrants sent around $103 billion in remittances to six different countries, including $19 billion directed to China.
More recently, Nicaragua received a remittance totaling $373.5 million in January 2025. According to a World Bank report, remittances accounted for 27% of Nicaragua’s GDP in 2024.
The Central Bank of Nicaragua acknowledges the significant impact remittances have on the nation’s economic growth. As reported by Christian K. Calzo from Breitbart News, Nicaragua ranks as the third-largest remittance-dependent economy globally, following Tajikistan and Tonga. Over recent years, there has been a notable rise in remittance inflows, primarily from the United States.
Reports indicate that from 2012 to 2021, remittances in Nicaragua climbed from $1.014 billion to $2.147 billion, reflecting a substantial increase. By 2023, they surged by an impressive $4.66 billion, reaching a record of $5.243 billion, which further underscores the 27% contribution to GDP.
In a speech on the House floor last November, it was emphasized, “We should collect fees for remittances sent from here or to other countries when individuals come here illegally. We need to tax those remittances to help fund border security initiatives.”
