The REMITTANCE Act would dramatically increase the federal excise tax on money transfers sent abroad from one percent to 25 percent. This tax applies to remittance transfers, which are payments sent by individuals to recipients in foreign countries, and would affect millions of Americans who regularly send money to family members and businesses overseas. The bill removes several existing limitations and safeguards that currently apply to this tax. To offset the burden on U.S. citizens, the bill creates a refundable tax credit allowing American citizens to reclaim the excise tax they pay on remittance transfers made for business or travel purposes. Revenue collected from the increased tax would be directed to the Treasury's general fund specifically for deficit reduction, with the tax taking effect retroactively to align with a previous law from 2025.
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