Bill · H.R. 8995· House(119-HR-8995)
REMITTANCE Act
- Introduced
- 5/21/2026
- Last activity
- 5/21/2026 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Chip Roy
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
This bill is known as the REMITTANCE Act. It changes the tax rules for sending money transfers out of the country. Specifically, it raises the excise tax on remittance transfers from 1 percent to 25 percent. The bill also removes certain limitations on this tax and states that the money collected will go toward deficit reduction. Additionally, it creates a refundable tax credit for United States citizens who pay this excise tax for business or travel purposes.
Yes
Does this reduce what the federal government owes?+4
Revenues generated from the increased remittance excise tax are explicitly designated to be deposited in the general fund of the Treasury for the sole purpose of deficit reduction.
Would business owners be better off under this?+2
U.S. citizens utilizing remittance transfers for business purposes are eligible for a refundable tax credit offsetting the excise tax.
Does this make the government pay for what it commits to?+2
Directing new tax receipts exclusively toward national deficit reduction promotes fiscal responsibility.
The opposite· 3 of 6
Would immigrants be better off under this?-8
Immigrant populations who frequently send financial support back to their home countries will bear the brunt of the 25 percent excise tax.
Does this cut taxes for middle-income families?-6
The bill significantly increases the excise tax on remittance transfers from 1 percent to 25 percent, which heavily impacts middle-class and working individuals who regularly send money abroad.
Would households on low incomes be better off under this?-5
Low-income households and individuals who frequently remit funds to family abroad will face a severe financial penalty due to the 25 percent tax rate.
Who it would affect, and how
Potential Positive Impacts for People
-
Section 2(e): This provision requires all the money collected from the increased excise tax to be deposited in the general fund of the Treasury for the sole purpose of deficit reduction. This could be viewed as a positive outcome for the public by helping to lower the national deficit.
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Section 3(a): This part creates a new section, section 36C, which establishes a refundable tax credit for United States citizens. Individuals who are U.S. citizens can get a credit against their taxes for the exact amount of tax they paid under section 4475(b)(1) for business or travel purposes, which benefits citizens who incur these specific costs.
Potential Negative Impacts for People
- Section 2(a): This section raises the excise tax on remittance transfers from 1 percent to 25 percent. This creates a heavy financial burden for anyone sending these types of transfers, as the tax rate goes up significantly.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Business Owners+2Good For Immigrants-8Good For Low Income Households-5Good For Hispanic Americans-4Good For Asian Americans-3Good For Middle Class Households-3
- Economy And Finance
- Reduces National Debt+4Improves Fiscal Responsibility+2Reduces Middle Class Taxes-6
- 5/21/2026
- Referred to the House Committee on Ways and Means.
- Introduced in House