How a Proposed U.S. Remittance Fee Could Affect Ghanaians and Other Immigrants

By clement nhyira addai , Top Knowledge TV | May 15, 2025

A new proposal in the United States Congress is stirring concerns among immigrant communities, including Ghanaians, over a potential fee on international remittance transfers. If passed into law, this measure could have significant financial consequences for both senders and recipients across the globe—particularly in developing countries like Ghana where remittances form a critical part of the economy.

What’s in the Proposal?

The proposal, backed by a group of conservative lawmakers, suggests imposing a 2–5% fee on all money transfers sent from the U.S. to foreign countries. The idea, according to its proponents, is to raise funds to strengthen border security and immigration enforcement. However, critics argue that the measure would disproportionately burden immigrants who send money home to support families, pay school fees, fund medical care, or build small businesses.

Though the bill is still at the committee level in Congress and has not yet been passed, advocacy groups and financial analysts are warning of its far-reaching implications.

Ghana: A Remittance-Dependent Economy

For Ghana, the stakes are high. In 2023 alone, Ghanaians abroad sent over $4.3 billion in remittances, according to the Bank of Ghana. These transfers rank among the top three sources of foreign exchange, alongside cocoa and gold exports. A large portion of that amount comes from the Ghanaian diaspora in the United States.

For many families in Ghana, monthly support from loved ones abroad covers essential needs such as rent, food, health care, and education. A fee as small as 2% on each transfer could translate into millions of dollars lost annually to the government fees—funds that would otherwise support economic survival and community development.

Potential Effects on Individuals and Families

Under the proposed fee structure, a Ghanaian in New York sending $500 a month to their family in Kumasi could face an additional $10–$25 in remittance charges. Over a year, this would amount to $120–$300—significant for both the sender and the recipient.

Worse still, such a policy could drive immigrants toward unregulated or informal channels, bypassing traditional banks and money transfer operators altogether. This shift may not only pose security and fraud risks but also reduce the transparency of money flows and the government’s ability to monitor and tax economic activity properly.

What Experts and Advocates Are Saying

Economic and migration experts have sharply criticized the proposed measure. The Migration Policy Institute warns that taxing remittances could exacerbate poverty and economic inequality in developing countries.

Closer to home, Ghana’s Ministry of Foreign Affairs and Regional Integration has yet to issue a formal statement, but some Ghanaian-American community leaders in the U.S. are already mobilizing efforts to lobby Congress and raise awareness about the potential consequences of the bill.

“This is not just a U.S. policy—it’s a policy that affects our mothers, our children, our local businesses in Ghana,” said Dr. Ama Serwaa, a Ghanaian economist based in Washington D.C. “It’s effectively taxing our families’ survival.”

Moving Forward

While the fate of the bill remains uncertain, it highlights the importance of active civic engagement among diaspora communities. Ghanaian and African immigrant organizations in the U.S. are urged to closely monitor the bill’s progress and make their voices heard through public comments and legislative advocacy.

Back in Ghana, financial institutions and policymakers must begin preparing for the potential economic impact, including exploring more affordable, secure alternatives for cross-border money transfers.