economy
US immigration policies are already hitting remittances to millions of households
Oxford Economics warned that tighter immigration is reducing remittances. Photo: Getty Images / AFP
TL;DR
- US immigration policies are negatively impacting remittances to Mexican households.
- Oxford Economics reports a significant reduction in the number of money transfer transactions from the US to Mexico.
- Stricter immigration controls, arrests, and border restrictions are cited as key reasons for this decline.
- The number of monthly transactions fell to about 12 million from a peak of 15 million in 2024.
- Despite fewer transactions, the average amount sent has increased to nearly $400 per month.
- Reasons for the slowdown include difficulties for migrants in entering and working in the US, fear of deportation, and a 1% federal tax on remittances.
- ICE arrests of Mexican migrants, representing about 40% of total agency arrests, are also a contributing factor.
- The report suggests remittances may stabilize and recover due to economic disparities between Mexico and the US.
- Mexico remains the largest foreign population in the US, with millions of individuals of Mexican origin or born in Mexico.