Overview

• The Senate draft reduces the remittance excise tax in the One Big Beautiful Bill Act to 1%, down from 3.5% in the House and an initial 5% proposal.
• The levy applies exclusively to transfers made via cash, money orders, cashier’s checks or similar physical instruments.
• Remittances funded through bank accounts or with U.S.-issued debit or credit cards are fully exempt from the tax.
• Senders of qualifying cash-based transfers are responsible for paying the 1% excise tax, not the recipients.
• The measure must clear the Senate by July 4 and would take effect on remittances sent after December 31, 2025.