Published on Thursday, May 21, 2026

Mexico | Could Trump’s New Measures Affect Remittances?

Summary

President Trump issued an executive order on May 19 aimed at outlining measures to restrict undocumented migrants' access to the U.S. financial system, including the use of remittance services and digital payment methods.

Key points

Key points:
Of the 12.6 million Mexican-born individuals residing in the United States, approximately 8.1 million hold U.S. citizenship or permanent residency. Furthermore, there are 29 million second- and third-generation Mexicans who also send remittances; this implies that the overall pool of remitters potentially affected by the current measure is limited.
Additionally, many Mexican households in the United States have "mixed" immigration status. In this context, undocumented migrants could rely on family members or acquaintances who are citizens or permanent residents to continue sending remittances.
The executive order also seeks to limit the acceptance of the Mexican Consular ID (matrícula consular) for opening and using financial services and products, both at bank branches and at money transfer agents or online platforms. Consequently, undocumented migrants would have to obtain a passport to continue using these services, which would entail higher costs and less convenience.
No significant effects have been observed from the 1% tax on cash remittances sent from the United States. Although the tax went into effect on January 1, 2026, remittances to Mexico reached 14.457 billion dollars in the first quarter of 2026, a 1.4% increase compared to the same period in 2025. We believe this is due, in part, to the aforementioned factors: undocumented migrants have alternative sources for sending funds, such as having documented family members process the transfers.
It will be critical to monitor the regulations issued by the U.S. Department of the Treasury and how the financial system implements these measures in light of pressure from the Trump administration.