- Mar 27, 2007
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President Donald Trump has several avenues to squash the riots in Los Angeles. Still, there’s a surefire way to cut off the money flowing to Mexico, thus significantly reducing the financial incentive illegal immigrants have to be in the U.S.
“Directo a México” is the official remittance program of the Federal Reserve Bank, facilitated through the FedGlobal service, which allows illegal immigrants to transfer money to Mexico’s central bank at no additional fee.
In an April 2013 report to Congress, the Federal Reserve Board detailed how it facilitates fee-free transfers through a special relationship between American banks and the Bank of Mexico.
“The Reserve Banks have worked with the Mexican central bank (Banco de México) to enable U.S. depository institutions sending remittance transfers through the FedGlobal service to Mexico, called Directo a México, to comply with future disclosure requirements. Banco de México has provided the Reserve Banks with specific information about applicable taxes and informed the Reserve Banks that no Mexican financial institutions that receive payments through FedGlobal will deduct fees,” the report stated.
Government money-transfer programs aimed at encouraging immigrants to join the U.S. banking system have been in place since at least 2005, according to a report by NBC News. The Federal Reserve Bank of Atlanta, through its Retail Payments Office, centrally manages the FedGlobal service, which enables illegal immigrants to enter the United States, receive payment for their work, and then send their earnings back to their home countries. (Sign up for Mary Rooke’s weekly newsletter here!)
Several U.S. banks take advantage of the program. The biggest culprits are Citibank, Bank of America, and Wells Fargo. In 2024 alone, Mexico received $64.745 billion in remittances, marking the 11th straight year of increased growth since 2014. These transfers account for approximately 4 percent of Mexico’s total GDP.
Mexican President Claudia Sheinbaum exposed just how desperately her country relies on these remittance payments in a video statement, which fanned the flames of the LA riots.
“Mexican citizens in America work hard to pay their bills. We don’t want this tax to affect the remittances of our countrymen, who tend to the needy,” Sheinbaum said. “If necessary, we will mobilize. We will not allow them to punish those who help the least fortunate.”
Trump’s Big Beautiful Bill includes a 3.5 percent remittance tax on transfers going to Mexico. As illegal immigrants and LA residents were attacking police and burning property, Sheinbaum promised to mobilize Mexico should this new tax proposal go into effect.
Missouri Republican Sen. Eric Schmitt promised to increase the remittance tax from 3.5 percent to 15 percent due to Sheinbaum’s threats.
“I’m introducing legislation to quadruple the proposed remittance tax — from 3.5% to 15%. America is not the world’s piggy bank. And we don’t take kindly to threats,” Schmitt said. “As I’ve said many times before: America isn’t an economic zone. It isn’t an airport with a shopping mall attached. It’s our country. It’s our people. It’s our home.”
Trump has been very clear that under his administration, Americans will no longer be taken advantage of by foreign governments or their citizens. He should direct the Federal Reserve and American banking institutions to end their remittance programs. This money does not stay in the U.S. and has a direct financial incentive enticing mass illegal immigration into our country.
dailycaller.com
Thoughts?
“Directo a México” is the official remittance program of the Federal Reserve Bank, facilitated through the FedGlobal service, which allows illegal immigrants to transfer money to Mexico’s central bank at no additional fee.
In an April 2013 report to Congress, the Federal Reserve Board detailed how it facilitates fee-free transfers through a special relationship between American banks and the Bank of Mexico.
“The Reserve Banks have worked with the Mexican central bank (Banco de México) to enable U.S. depository institutions sending remittance transfers through the FedGlobal service to Mexico, called Directo a México, to comply with future disclosure requirements. Banco de México has provided the Reserve Banks with specific information about applicable taxes and informed the Reserve Banks that no Mexican financial institutions that receive payments through FedGlobal will deduct fees,” the report stated.
Government money-transfer programs aimed at encouraging immigrants to join the U.S. banking system have been in place since at least 2005, according to a report by NBC News. The Federal Reserve Bank of Atlanta, through its Retail Payments Office, centrally manages the FedGlobal service, which enables illegal immigrants to enter the United States, receive payment for their work, and then send their earnings back to their home countries. (Sign up for Mary Rooke’s weekly newsletter here!)
Several U.S. banks take advantage of the program. The biggest culprits are Citibank, Bank of America, and Wells Fargo. In 2024 alone, Mexico received $64.745 billion in remittances, marking the 11th straight year of increased growth since 2014. These transfers account for approximately 4 percent of Mexico’s total GDP.
Mexican President Claudia Sheinbaum exposed just how desperately her country relies on these remittance payments in a video statement, which fanned the flames of the LA riots.
“Mexican citizens in America work hard to pay their bills. We don’t want this tax to affect the remittances of our countrymen, who tend to the needy,” Sheinbaum said. “If necessary, we will mobilize. We will not allow them to punish those who help the least fortunate.”
Trump’s Big Beautiful Bill includes a 3.5 percent remittance tax on transfers going to Mexico. As illegal immigrants and LA residents were attacking police and burning property, Sheinbaum promised to mobilize Mexico should this new tax proposal go into effect.
Missouri Republican Sen. Eric Schmitt promised to increase the remittance tax from 3.5 percent to 15 percent due to Sheinbaum’s threats.
“I’m introducing legislation to quadruple the proposed remittance tax — from 3.5% to 15%. America is not the world’s piggy bank. And we don’t take kindly to threats,” Schmitt said. “As I’ve said many times before: America isn’t an economic zone. It isn’t an airport with a shopping mall attached. It’s our country. It’s our people. It’s our home.”
Trump has been very clear that under his administration, Americans will no longer be taken advantage of by foreign governments or their citizens. He should direct the Federal Reserve and American banking institutions to end their remittance programs. This money does not stay in the U.S. and has a direct financial incentive enticing mass illegal immigration into our country.

ROOKE: Trump Could Suffocate These Riots By Ending Massive Incentive Program For Illegal Immigrants
There's a surefire way to cut off the money flowing to Mexico, thus significantly reducing the financial incentive illegal immigrants have to be in the U.S.

Thoughts?