America’s Immigration Crackdown and Global Remittances

The Trump administration’s immigration restrictions may have a larger negative impact on developing countries’ economies than the shutdown of USAID and cuts to international aid, according to University of Michigan economist Dean Yang.

Immigrants in the United States sent nearly $80 billion back to their home countries in 2022, making the U.S. the world’s top source of remittances—an amount that dwarfs official U.S. foreign aid spending. Migrants from poor countries working in the U.S. often see their earnings increase four to five times, sometimes much more.

While some countries like Mexico have experienced drops in remittances, others are seeing record surges. However, this surge is expected to be temporary, with remittances likely to decline as immigration to the U.S. decreases and deportations increase.

The economic impact could be severe for Central American nations. Remittances account for 20% to 27% of GDP in Honduras, Nicaragua, El Salvador, and Guatemala—countries that are already politically and economically fragile. This makes the immigration crackdown’s potential consequences particularly significant for the developing world.

Read the full article: https://www.kgou.org/business-and-economy/2025-10-28/americas-immigration-crackdown-is-disrupting-the-global-remittance-market