The Trump administration's recently introduced domestic policy bill threatens to impose a significant tax on remittances, effectively making the United States one of the most expensive countries to send money from. This potential change could greatly harm African economies that are already grappling with poverty and recent cuts to foreign aid.
The legislation, known as "One Big, Beautiful Bill," would target financial support sent by immigrants to their home countries, impacting millions of families worldwide who depend on these funds. The proposed measure would not only compound the effects of earlier slashes to foreign assistance but also impose substantial fees on remittances, with African nations among the hardest hit.
In Africa, where levels of poverty are acute, remittances often serve as a vital lifeline. A report indicates that if the bill passes, Nigeria would be particularly burdened by a loss of approximately $215 million in remittances. Additionally, countries like Gambia and Liberia would experience difficulty, as remittances account for about a quarter of their gross national income. Senegal, the country most dependent on these funds according to the World Bank, is also expected to face severe repercussions.
The proposed tax speaks to a broader trend of U.S. withdrawal from Africa, as evidenced by recent cuts to the Agency for International Development and the introduction of high tariffs following a period of favorable trade agreements. The implications of this bill not only endanger the financial wellbeing of millions reliant on remittances but also signify an alarming retreat from international support and cooperation.
