Summary
Many undocumented workers in the U.S. are sending more money to their home countries due to fears of deportation. As a result, there’s been a significant rise in remittances, which is the money that people send to their families back home. This increase is partly due to heightened immigration enforcement and new tax laws affecting these money transfers.
Key Facts
- Undocumented workers are sending more money home because they fear deportation.
- President Trump's administration has deported 2 million people, with 400,000 deported recently.
- Increased remittances from the U.S. to Latin America are expected to reach $161 billion this year.
- Countries like Honduras, Guatemala, El Salvador, and Haiti rely heavily on these remittances.
- Remittances have risen from an average of $300 to $400.
- A 1 percent tax on remittances sent abroad through certain methods is now in effect.
- Mexico saw a 5.8 percent decline in remittances in 2025, a first in years.
- Some migrants bundle transfers into larger one-time payments to avoid future taxes.
