United States Senator Eric Schmitt is pushing for a much higher tax on money sent abroad by migrants. On Monday, the Missouri Republican said he plans to introduce a bill to raise the proposed remittance tax from 3.5 per cent to 15 per cent.

Schmitt, a former Missouri Attorney General and strong supporter of President Donald Trump, said the move aims to protect U.S. resources.

The House’s Big Beautiful Bill addressed the urgent need for a remittance tax. But we can go further. I’m introducing legislation to quadruple the proposed remittance tax — from 3.5% to 15%. America is not the world’s piggy bank. And we don’t take kindly to threats, he said.

His proposal follows the viral circulation of a video over the weekend showing Mexican President Claudia Sheinbaum strongly criticising the planned tax in a speech delivered last month.

The U.S. House of Representatives passed The One Big Beautiful Bill on May 22. The legislation, passed by a narrow vote, includes a 3.5 per cent tax on remittances sent abroad by non-citizens, including green card holders and temporary visa holders. Earlier drafts proposed a 5 per cent tax, which was reduced during the legislative process. Some Republican senators have since introduced bills seeking to raise the tax rate.

The bill is a key part of Trump’s broader plan to overhaul U.S. immigration, tax, and economic policy. Supporters argue that taxing remittances will help reduce illegal immigration and raise funds for domestic priorities. However, critics warn that the bill could hurt migrants and the families they support, especially in African countries. Remittances are generally a significant revenue stream for developing countries.

In 2024, African nations reportedly received over $90 billion in remittances. Nigeria, Egypt, and Kenya are among the top recipients, with Nigeria alone receiving $5.7 billion from the U.S. in 2021. These funds are essential for basic needs like school fees, healthcare, and small businesses. A higher tax would reduce how much money families receive and damage local economies.

Fintech companies such as LemFi, NALA, Kuda, and Moniepoint – which help migrants send money home – may also face new challenges. The bill would require these platforms to confirm the immigration status of senders and apply tax credits for U.S. citizens. These changes could raise costs, delay transfers, or reduce services.

African governments have not yet issued formal responses, but the potential impact is significant. The bill is now in the U.S. Senate. Republicans hope to pass it by July 4 through a process known as budget reconciliation, which requires only 51 votes.