Filipino migrants are expressing concern over US President Donald Trump’s proposed “One Big Beautiful Bill,” which is currently under discussion in the country’s Senate. A provision of the bill will impose a 3.5% tax on remittances sent by workers in the US who are not US citizens, such as green card holders, contractual workers, and undocumented immigrants. The proposed tax may also cover non-US migrants whose remittances pass through American banks.

Currently, banks and money transfer services already deduct transaction fees from Filipino migrants’ remittances. Traditional banks usually charge $30 to $75 per international wire transfer, while remittance services like Remitly, Wise, and Western Union charge up to several dollars, often with a small markup on the exchange rate.

The US accounts for 41% of the total remittance inflow to the Philippines, so this measure will have a significant impact. For every $1,000 sent, an additional $35 may be deducted as tax, on top of existing service charges. For example, sending $1,000 through a traditional bank may result in a total deduction of up to $110 (transaction fees and tax), while cheaper digital services will still add the tax to their usual charges.

Migrants warn that these additional costs will be shouldered most heavily by low-income families, as they may be forced to reduce the amount they send or resort to informal and often riskier methods of sending money.

IBON Foundation executive director Jose Enrique “Sonny” A. Africa said the proposed tax will further pull down the purchasing power of Filipino families who rely on remittances, which has already been declining because of the continuous rise in prices of goods in the country. He said that the Philippine government, which benefits from Filipinos working in the US, must address this issue.