HARRISBURG, PA — Members of the Pennsylvania Legislative Latino Caucus, alongside community advocates and immigrant leaders, are calling on Congress to block a proposed federal tax on remittances, warning it would harm working families and immigrant communities across the state.
The controversial provision, included in a broader budget reconciliation bill that passed the U.S. Senate and now returns to the House for consideration, would impose a 3–5% tax on funds sent overseas by American and immigrant families. Supporters of the tax argue it could generate revenue and improve financial oversight, but critics say it threatens economic stability for countless households.
At a news conference Tuesday, state Rep. Johanny Cepeda-Freytiz, chair of the Pennsylvania Legislative Latino Caucus, described the measure as “morally wrong, economically reckless, and deeply out of step with the values we claim to hold in this country.”
Cepeda-Freytiz was joined by other lawmakers, including Rep. Joe Hohenstein, who emphasized that many small businesses rely on remittance services to help employees support families abroad. “What this bill is doing is placing an extra tax on working people,” Hohenstein said. “It is important to urge our federal representatives to reject the federal remittance tax so that immigrants can continue doing the right thing and being rewarded justly, not punished.”
Rep. Danilo Burgos condemned the proposal as a targeted attack on vulnerable communities, urging Pennsylvanians to defend their neighbors. “Federal Republican lawmakers continue to attack the weakest parts of our communities on every level of public policy,” he said.
Advocacy organizations echoed these concerns. Laura Beltran Figueroa, policy and research director at the Pennsylvania Policy Center, called the tax “a direct attack on the American Dream,” arguing it would restrict immigrants’ ability to support loved ones abroad and undermine local economies. She noted that over 8% of Pennsylvania’s population is foreign-born and relies heavily on remittances.
Julio Rodriguez of the Pennsylvania Immigration Citizenship Coalition criticized the bill for further expanding immigration enforcement and described it as “a blueprint for punishment,” calling on Senators John Fetterman and Dave McCormick to oppose it.
Patty Torres from Make the Road Pennsylvania labeled the measure “tyranny masquerading as public safety,” warning that it would amount to an “all-out assault on working families” and have long-lasting consequences on economic and social stability.
Shamaine Daniels, Pennsylvania state director for CASA Inc., highlighted the practical impact on families, pointing out that remittances often cover basic needs such as food, medicine, and rent. “Taxing remittance is a second tax on those families,” Daniels said. She warned that if families are unable to support relatives abroad, they might feel compelled to bring more family members into the United States, further straining the immigration system.
The caucus and its allies are urging Pennsylvania’s congressional delegation to reject the tax outright. As the measure heads back to the House, the outcome could have sweeping implications not only for immigrant families but also for small businesses and local economies throughout the Commonwealth.
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