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The remittance shipments from the United States to Central American countries have experienced a significant increase in recent months, driven by the fear of potential mass deportations under the current administration of President Donald Trump.
Experts interviewed by Univisión Miami explain that many Central American immigrants are sending more money to their families in order to establish an economic foundation that will allow them to return to their home countries in the event of being expelled from U.S. territory.
This trend, they indicate, is a response to the tightening of the immigration policies implemented by Trump, which include raids, accelerated deportations, and additional restrictions on immigration benefits.
In light of this situation, thousands of workers are seeking extra jobs to increase their income and thus be able to send remittances more frequently.
Remittances increase by up to 20%
Data from the Central Bank and the Central American Monetary Council reflect that remittances to Guatemala, Honduras, Nicaragua, and El Salvador have increased, on average, by 20% compared to the same period last year.
In many households in these countries, money sent from abroad represents the only source of income to cover basic needs.
Despite the efforts of migrants, resources are never enough, due to the high cost of living in the region and the reliance that many families have developed on these remittances.
Mexico: a different case
Unlike Central America, remittances in Mexico have decreased by 7%. Political analyst José Luis B. Garza explained that among the factors contributing to this decline is the voluntary return of many Mexican migrants to their homeland due to the hostile environment they face in the United States.
Garza also noted that part of the remittances from illicit activities are not recorded through official channels, which contributes to an apparent decrease. Furthermore, there has been an increase in the use of informal methods for sending money, making it difficult to accurately account for the real economic flow.
New 1% tax starting in 2026
The Trump administration will impose a 1% tax on all remittances sent from the United States starting in January 2026, as part of its immigration policy.
This measure will affect millions of immigrants. It has been criticized by human rights advocacy organizations and by communities in exile, but the U.S. government remains firm in its decision.
The case of Cuba: Activists call for cutting remittances to collapse the regime
In the Cuban case, most remittances are managed through private agencies that deliver cash directly to relatives on the island, due to the impossibility of using formal banking channels because of existing restrictions or because they are excessively expensive.
The presenter and activist Alexander Otaola reiterated in August his call for a “total stop” of remittances, travel, and aid to Cuba, arguing that this could bring down the regime in less than three months.
Otaola urged the Cuban community in exile to flood the offices of U.S. congress members and senators, especially in Florida, with emails and calls to demand a complete halt to the flow of economic support to the island.
“Stop the trips, stop the aid, stop the flights, stop the top-ups, stop everything… The dictatorship cannot sustain it for three months with everything shut down,” stated the influencer.
Frequently Asked Questions about the Increase of Remittances from the U.S. to Central America and the Remittance Tax
Why have remittances from the U.S. to Central America increased?
Remittances have increased due to fears of possible mass deportations under the administration of Donald Trump. Many Central American immigrants are sending more money to their families to establish an economic foundation in case they are expelled from the U.S. This rise is attributed to the tightening of immigration policies, which includes raids and expedited deportations.
What is the impact of the new 1% tax on remittances?
The 1% tax will affect remittances sent exclusively in cash, money orders, or cashier's checks. This levy will take effect in January 2026 and aims to raise funds as part of the legislative package "One Big Beautiful Bill." Electronic and bank transfers will be exempt, which may encourage the use of digital channels to avoid the tax.
How does the decrease in remittances affect Mexico?
In Mexico, remittances have decreased by 7% due to the voluntary return of many migrants. This decline is also attributed to the use of informal channels for sending money, which hinders proper accounting of the economic flow. Additionally, President Claudia Sheinbaum has announced a 1% tax refund through the Financiera del Bienestar to mitigate the impact.
What measures are being taken regarding remittances in the case of Cuba?
There is a call for a "total halt" to remittances to Cuba as a pressure tactic against the regime. Activist Alexander Otaola is advocating for the cessation of remittances, travel, and aid to collapse the Cuban regime. This call aligns with other restrictive policies promoted by the Trump administration, which seeks to cut the economic flow to the island.
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