Trump’s remittance ban shuts out undocumented migrants: Millions of families cut off

DAVAO CITY (July 1)-Families of undocumented migrants in the United States are now facing a grim financial reality: the flow of dollars from abroad has come to an abrupt halt. This follows a controversial directive announced by former U.S. President Donald Trump on June 20, enforcing a new remittance ban targeting undocumented immigrants.

“If you do not have legal immigration status, you can’t send a single dollar home. This isn’t a warning. It’s happening,” Trump declared during the policy’s announcement. “Illegal immigrants have been draining $150 billion annually from our economy. That ends tomorrow.”

Under the newly implemented Remittance Control Act, which took effect on June 21, all financial transfers from undocumented migrants to their countries of origin are blocked. Key remittance companies such as Western Union, MoneyGram, and other wire transfer services are now required to verify the legal immigration status of senders. Without a valid U.S. government-issued ID or Social Security number, transfers are automatically denied.

Banks and financial institutions must now validate the immigration status of individuals initiating transfers. Those who fail to comply face penalties of up to $10,000 per illegal transaction. Businesses involved in money transfers also risk losing their licenses.

The move has sent shockwaves through migrant communities and their families across Latin America and beyond. According to international economic reports, over 42 million immigrants in the U.S. contribute to the livelihoods of more than 800 million family members globally through remittances.

“Families in Mexico, Guatemala, El Salvador, and across the developing world are about to lose their only lifeline,” said one human rights advocate. “This isn’t just about money. It’s about food, school, and survival.”

While some Trump supporters have praised the policy for its tough stance on illegal immigration, even conservative commentators have called the move “extreme” and “punitive.”

Critics warn of deep economic and humanitarian fallout both within the United States and abroad, as families dependent on remittances face uncertain futures. Human rights groups and immigration advocates are preparing legal challenges, arguing that the measure violates basic financial rights and international obligations.

For now, undocumented migrants are left with limited legal options to support their families back home, further underscoring the human cost of the immigration debate in America.