Millions around the world rely on money sent by family members working in the U.S.

(Yahoo News) Poor countries around the world are still dealing with the impact of America’s foreign aid programs being essentially shut down in the early days of President Trump’s second term. Now Republicans in Congress are poised to deal a smaller yet still significant blow to another crucial financial lifeline: Money they receive from loved ones working in the U.S.

Money transfers from the U.S., often sent by immigrants who came here specifically to earn cash they can use to support the people they left back home, are a vital source of income for people in developing countries around the world. Cumulatively, U.S. residents sent more than $79 billion abroad in 2022, the most recent year with available data. That’s more than the federal government spent on direct foreign assistance the same year and double the amount that was sent from any other country.

The GOP’s “big, beautiful bill” includes a provision that would impose a new tax on these transfers, which are formally known as remittances. As it’s currently written, the bill would place a 3.5% tax on all outbound remittances. If that rate holds, it would mean billions of dollars intended for the poorest people across the globe would instead go to the government.

https://www.yahoo.com/news/millions-around-the-world-rely-on-money-sent-by-family-members-working-in-the-us-trumps-big-beautiful-bill-would-deal-them-a-financial-blow-194516497.html