Remittances are a vital economic lifeline for millions around the world, especially in developing nations. In 2024 alone, people living in the United States sent more than $98 billion to their countries of origin, according to World Bank data. But experts warn that a new remittance tax set to take effect in 2026 as part of President Donald Trump's so-called "big, beautiful bill" could deliver a major blow to African nations that depend heavily on these funds for growth and development.
Remittances—money sent by migrants to support family or business needs back home—are particularly critical in sub-Saharan Africa. The region received $56 billion in global remittances last year, according to NBC News. Experts say the proposed one percent tax could significantly disrupt those flows and undermine progress in some of the continent's most vulnerable communities.
