U.S. Proposes New 5% Tax on Money Transfers Abroad by Foreign Nationals: What It Means for Cameroonians Living in America

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Sending money back home is a deeply rooted practice for many Cameroonians living in the United States. It is not just about finances—it is about family, duty, and staying connected to one’s roots. However, a new tax proposal making its way through Congress threatens to make this essential act of support significantly more costly. The Republican-led bill includes a provision to impose a 5% tax on all international money transfers made by non-citizens. While American citizens would be exempt, immigrants—including thousands of Cameroonians—would be directly affected.

Under this proposal, the tax would be collected at the point of transfer by banks and money transfer companies, regardless of the amount sent or the reason for sending it. Whether it is monthly support for a parent, tuition payments, or investments in property back home, every dollar transferred would lose five cents to this new tax. For many, this seemingly small percentage could add up to a considerable burden over time.

The motivation behind this move lies in Washington’s search for new sources of revenue. With ongoing efforts to extend tax cuts and fund border enforcement priorities, lawmakers are looking to international remittances as a potential stream of billions in new funds. But for immigrant communities who already shoulder financial responsibilities in two countries, the cost is personal and heavy.

The timeline for this bill is moving fast. The House of Representatives is aiming to vote on it by Memorial Day, May 26, 2025. If passed, it will then move to the Senate with the intention of reaching President Trump’s desk by July 4. That gives only a narrow window for action, and for many Cameroonians, time is of the essence.

Those who send money regularly should consider advancing any large transfers they have planned before the bill becomes law. Sending funds now could avoid the 5% deduction that may soon become unavoidable. Beyond immediate transactions, this change may also require a broader rethinking of personal budgets, investment strategies, and how families are supported from abroad.

This proposal represents a significant shift in U.S. financial policy toward immigrants. Until now, remittances from the U.S. to Cameroon were not subject to U.S. taxes. If this bill becomes law, that era will end. It is a moment that calls not only for awareness, but for preparation. For Cameroonians living in the United States, the days ahead may demand quick decisions and careful financial planning to adapt to a new and challenging landscape.