EL PASO, Texas (Border Report) – The money that individuals working abroad send to their families in Mexico fell for a third month this year.
And some fear further, possibly catastrophic declines in this vital source of income for the Mexican economy if the U.S. Senate approves the 3.5 percent tax on remittances the House green-lit in its version of the One Big Beautiful Bill Act.
Bank of Mexico (Banxico) data released this week shows Mexican families received $4.76 billion in wire transfers, checks, money orders and cash from abroad in April. That’s more than a quarter-of-a-billion-dollar decline from the $5.14 billion received in March, Banxico reports.
It also represents a 12.1 percent year-over-year decline – the biggest dip since September 2012. Mexico last year received $64.7 billion in remittances representing 4 percent of its gross domestic product.
Analysts earlier told Border Report remittances are down for two reasons: Mexican immigrants dealing with economic uncertainty brought by President Trump’s tariffs on other countries, and undocumented workers either saving that money in case they are deported or fearing going out to wire money for fear of being apprehended by U.S. immigration authorities.
Mexican President Claudia Sheinbaum Pardo called for calm during a news conference on Tuesday broadcast on YouTube.
“First, let’s do an analysis of why remittances fell these last three months. And second, we will insist on (the United States) not taxing remittances,” Sheinbaum said.
She said a diplomatic delegation would be in Washington, D.C., on Wednesday to talk to members of the U.S. Senate about excluding the 3.5 percent tax on remittances from budget reconciliation talks.
In the United States, Mexican activists already protesting the Trump administration’s enhanced deportation policies now are fighting the remittance tax. The 3.5 percent levy would generate the U.S. $22.2 billion in revenue from 2026 to 2034, according to the Joint Committee on Taxation.
Almost 1,000 people have signed a petition on Change.org urging Republican Senators to nix the remittance tax.
“We write to urge you to reject Section 112105 of the One Big Beautiful Bill, which proposes a harmful 3.5% tax on the remittances we send to support our families in Mexico,” the petition says. “These are not luxury transfers. They are modest amounts used to cover food, medicine, and shelter. Taxing them would punish those who are already struggling the most.”
The average wire transfer to Mexico is $385, according to Banxico.
The activists echoed Mexican officials’ concerns that fewer remittances to Mexico will mean more illegal migration to the United States.
“It is important to note that remittances play a quiet but powerful role in reducing irregular migration. By helping our families meet basic needs at home, we give them the chance to stay rooted in their communities, making them far less likely to undertake the dangerous journey north,” the letter says.
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