What The Proposed U.S. Remittance Fee Means For Immigrants And Their Families Back Home
A new bill, the Border Security Investment Act introduced in the United States House of Representatives, aims to strengthen border security by imposing a steep fee on remittances sent by immigrants.
If the Border Security Investment Act is passed, the proposal could have significant consequences for immigrants in the United States and the economies of countries that heavily rely on these remittances.
The Border Security Investment Act (H.R. 445) proposes a 37% fee on remittances sent through money services businesses to the top five countries whose citizens or nationals had the most unlawful entries into the United States as determined by U.S. Customs and Border Protection (CBP)
However, the bill does not specify which countries these are; instead, it mandates that CBP annually identify these countries based on the latest data.
It’s important to note that the list of countries subject to the remittance fee can change annually, reflecting shifts in migration patterns and enforcement data.
Therefore, individuals and businesses involved in remittance transfers should regularly review CBP’s reports to stay informed about any changes that may impact their transactions.
The Border Security Investment Act, sponsored by Rep. Nathaniel Moran and co-sponsored by six other Republican representatives, targets remittances sent through money services businesses to the five countries with the highest number of citizens or nationals unlawfully entering the U.S. in the previous fiscal year, as determined by U.S. Customs and Border Protection.
The bill aims to impose a 37% fee on these remittance transfers.
This bill is distinct from the WIRED Act (Withholding Illegal Revenue Entering Drug Markets), introduced by Rep. Kevin Hern in 2022, which proposed a 5% fee on remittances to combat illegal immigration and cartel activities.
While both bills aim to fund border security, the Border Security Investment Act targets a broader group of countries and enacts a much higher fee compared to the WIRED Act.
The proposed bill targets countries with the highest number of unlawful U.S. entries, though it does not specify the affected nations.
Historically, both Latin American and African countries, particularly since Donald Trump’s presidency, have been impacted by U.S. immigration policies.
According to recent U.S. Customs and Border Protection (CBP) statistics, nationals from countries such as Egypt, Mauritania, Senegal, Uzbekistan, and India have been encountered at the U.S. southern border, indicating potential inclusion in the list.
Business Insider Africa recently highlighted African countries that topped the U.S. immigration deportation list in 2024 and according to the U.S. ICE Annual Report for 2024, several African nations were listed among those whose citizens faced multiple infractions, making them inadmissible or subject to deportation.
Given the significant number of African removals, it is likely that some African countries will be included among the top five nations affected by this bill.
If passed, this could have a substantial impact on African dependents who rely on remittances from relatives in the U.S., as the proposed 37% fee on remittances could reduce the financial support that many families rely on for everyday living expenses, healthcare, and education.
Supporters of the proposed fee argue it would fund efforts to curb illegal immigration, but opponents say it unfairly targets legal residents and ignores the root causes of migration, like poverty and violence.
The tax could severely affect low-income African households that depend on remittances for essentials such as food, school fees, rent, and medical expenses.
With Africa receiving $100 billion in remittances in 2023—about 6% of its GDP—countries like Nigeria, Egypt, Morocco, Kenya, and Ghana, that rely heavily on these funds, could see significant financial strain.
