US President Donald J. Trump’s proposed tax measure “One, Big, Beautiful Bill,” which will impose a 3.5% tax on remittances, could generate “negative repercussions” for undocumented and temporary Filipino migrants, an analyst said.
“Given that increased spending on managing security and border controls is expected to be promulgated, there is a big possibility that they will be facing higher risks in the near future,” Diplomacy lecturer at De La Salle-College of St. Benilde Josue Raphael J. Cortez said in a Facebook Messenger chat.
The legislation could be an impetus for further crackdown, he said, adding that the increased taxation is expected, Filipinos will have a tougher time in the US.
Despite the vulnerabilities faced by Filipino migrants abroad, Mr. Cortez said this situation does not represent a structural flaw in the Philippine diaspora model.
“More and more countries, especially in the developed world, are seeking immigrants as they face shrinking and aging populations,” he said.
However, he urged Manila to fast-track reintegration programs for returning Filipinos and implement broader frameworks in light of global complexities.
“The Philippines must champion itself as the global model of diaspora governance,” Mr. Cortez said. “This is the kind of soft power that we are currently promoting to the rest of the world.”
The Philippines, a labor-exporting country, relies heavily on remittances from millions of OFWs to support domestic consumption and sustain economic growth. These remittances serve as a lifeline for many households and a buffer for the country’s balance of payments.
Cash remittances from OFWs coursed through banks rose by 4% to $2.66 billion in April from $2.56 billion in the same month a year ago.
In the first four months of 2025, cash remittances went up by 3% to $11.11 billion from $10.78 billion a year ago.
The Marcos administration, through the Department of Finance (DoF), said “only 20% [of 4.4 million Filipinos in the US] will be affected by the proposed tax proposal.”
It estimated as much as $100 million expected loss in remittances out of the $36.5 billion projected remittance in 2026.
The department also expects a minimal decline of 0.003% of the gross domestic product, but noted a “substantial” impact may be felt by families relying solely on remittances.
“$100 million divided by some 850,000 temporary and undocumented Filipino migrants in the US comes to around P6,700 lost per migrant sender,” Jose Enrique A. Africa, executive director of IBON Foundation said in a Viber chat.
“This tax is yet another burden on them and their families in the Philippines,” he added, noting migrant workers are already facing enough hardships abroad.
Mr. Trump’s controversial bill, which was approved by the US House of Representatives in May, includes a provision imposing an excise tax of 3.5% on money sent abroad by foreign workers in the US. The US Senate is now deliberating on the measure.
Finance Secretary Ralph G. Recto earlier said the legislation, if passed into law in the US, is “a concern” for the Philippines. — Chloe Mari A. Hufana
