On July 1, 2025, the United States Senate approved a revised version of the "One Big Beautiful Bill," introducing a 1% federal tax on remittances sent abroad. This tax, known as the "Special Remittance Transfer Tax," will apply only to transfers made in cash, money orders, or cashier's checks.
Remittances sent from bank accounts or via debit or credit cards issued in the United States are exempt. The implementation of this tax is scheduled for December 31, 2025. Despite the tax rate reduction from the initially proposed 5% to 1%, its implementation could significantly impact Latin American economies.
Mexico's President, Claudia Sheinbaum, announced that her government will reimburse the 1% tax to Mexican migrants sending remittances through Financiera del Bienestar (Finabien). The International Monetary Fund (IMF) has also expressed concerns about the potential consequences of this tax on remittance-receiving countries.