OFWs in US face higher remittance tax under Trump 'big' bill
Sandi Agustin counts dollars as she and many other overseas FIlipino workers (OFWs) in America brace for a potential rise in the US tax for money remitted to families in the Philippines under the administration of Donald Trump. DAVE LLAVANES JR.
NEW YORK — Thousands of overseas Filipino workers (OFWs) in the United States could soon be burdened with higher remittance costs if the proposed One Big, Beautiful Wall Act pushed by US President Donald Trump is enacted into law.
Under the proposed measure, a 3.5% excise tax would be imposed on all money sent outside the US, including remittances to the Philippines. This means that non-US citizens sending money to their families back home could soon be paying significantly higher fees.
For worker Sandi Agustin, who regularly sends money to relatives in the Philippines, the proposed tax is too heavy a burden.
"For me, that's a big increase for ordinary workers like us here in America. Everyone knows that we don't just pick money up off the street here—we work hard for it. And instead of going entirely to our families, part of it will now go to taxes. It's really hard for us," Sandi told GMA Integrated News.
Sandi sends money to her family in the Philippines about four times a month. Currently, she pays around $10 in transfer fees each time. But with the proposed excise tax, that amount could skyrocket to as much as $140 per month.
"I usually send money weekly or bi-weekly. But if this tax becomes law, I might have to limit it to just once a month. If that's the rule, we'll follow it—we are law-abiding immigrants after all," she added.
Arturo Reyes, a dialysis technician, shares Sandi's concern. He appealed to the US government to reconsider or reduce the proposed tax, especially since many Filipinos in America are already struggling to support families back home.
According to Reyes, he typically pays $7 to send $1,000 to the Philippines. Under the new proposal, that fee could rise to $35 per $1,000 sent—a 500% increase.
"That's a big deal for us because Filipinos here in America work double time just to send money home. I appeal to President Trump—please lower the 3.5%, make it even lower. I hope you understand the situation of all Filipinos here in America," Reyes said.
Aside from higher fees, the proposed law also mandates stricter verification requirements for remittance centers, raising concerns that it might expose the immigration status of some senders, especially those who are undocumented.
The United States remains the largest source of remittances to the Philippines, according to data from the Bangko Sentral ng Pilipinas (BSP). Last year alone, Filipino workers in the US sent about $14 billion back home.
If passed, the One Big, Beautiful Wall Act could significantly impact the flow of remittances from the US, affecting countless Filipino families who rely on that financial lifeline for daily expenses, education, and medical needs.
As of now, the bill is still pending in the US Congress, and many OFWs are closely watching developments, hoping for a more favorable outcome. — VDV, GMA Integrated News
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