Study Reveals Immigrants Send $200 Billion Abroad from the U.S. Annually

A staggering $200 billion leaves the United States every year in the form of remittances sent by both legal and illegal immigrants to their home countries, according to a new study by the Federation for American Immigration Reform (FAIR). This massive outflow of money is draining the American economy while enriching foreign nations and in some cases, even fueling criminal enterprises.

The report highlights that in 2021 alone, remittances from immigrants in the U.S. were sent to 134 countries, with Mexico topping the list, followed by India, Guatemala, the Philippines, and China. As immigration levels have surged under the Biden administration, FAIR argues that this number is almost certainly higher today.

“Remittances effectively represent a transfer payment of hundreds of billions of dollars from American workplaces and communities to people abroad,” said FAIR Executive Director Dale Wilcox. “To compound the problem, many migrants who send remittances out of the U.S. earn so little that they qualify for public benefits. The result is that American citizens subsidize social services and welfare benefits for aliens, legal and illegal, who send much of what they earn out of the country.”

Key findings from the report include:

• Mexico receives over 25% of all remittances sent from the U.S., with Mexican nationals sending nearly one-fifth of their income back home.

• In several Central American countries, remittances account for up to 20% of their entire GDP.

• Illegal immigrants often work off the books, meaning payroll taxes are never collected on much of the income being sent overseas.

This massive cash flow is now sparking serious discussion among conservative lawmakers who argue that America must impose a remittance tax. FAIR Media Director Ira Mehlman said, “Placing a fee on remittances is crucial because the more money that is smuggled back into Mexico, the stronger the cartels become. Taxing the money as it leaves the country would be a way to recoup some of that revenue loss.”

The original "Big Beautiful Bill" included a 5% tax on remittances, but the final version was watered down to just 1%. The move infuriated Mexican President Claudia Sheinbaum, who threatened to “mobilize” against the tax. In response, Senator Eric Schmitt (R-MO) fired back, saying, “America is not the world’s piggy bank. And we don’t take kindly to threats.”

Senator Schmitt has since introduced the REMIT Act, which proposes a robust 15% tax on all remittances, arguing that this measure would help curb illegal immigration while keeping more money circulating in the American economy.

With tens of billions of dollars leaving U.S. borders each year much of it untaxed the issue of remittances is becoming a flashpoint in the broader debate over immigration, border security, and economic sovereignty. Critics argue that Biden’s open-border policies have only amplified this problem, while leaders like Trump have long warned about the financial drain caused by unchecked immigration.

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