Amount Of Cash Sent Back To Mexico By Immigrants Crashed 16.2% In June

Remittances from the U.S. to Mexico have sharply declined in 2025, with experts citing stepped-up immigration enforcement and fear of deportation as the primary reasons.

The data points to a growing impact of President Trump’s immigration agenda—and fewer illegal workers on the job.

Key Facts:

Remittances to Mexico dropped 16.2% in June 2025 compared to June 2024, falling to $5.2 billion.
The number of people sending money home fell by 14%, despite a slight increase in average remittance amount.
Western Union executives blame tougher immigration policy for falling cross-border transfers.
U.S. immigration raids and job market pressure have driven four straight months of foreign-born worker decline.
Mexico is bracing for continued economic fallout, including slower growth and strained family budgets.

The Rest of The Story:

Mexico’s central bank, Banxico, reported a significant drop in remittances from the U.S. in the first half of 2025. June saw the biggest drop yet—over 16% compared to the previous year. Analysts say this signals a larger trend that could impact millions of families in Mexico.

Despite a rise in the average dollar amount sent—$409 per transfer—the number of transfers fell by 14%. Western Union’s leadership cited changes in U.S. immigration enforcement as the driving force behind the trend.

“We continued to see weakness in North America, driven by immigration policy,” said CFO Matt Cagwin during an investor call.

Economist Gabriela Siller from Banco Base added that fear of deportation and lack of job opportunities are keeping migrants from working and sending money home.

“Remittances plummeted… due to the fear of migrants to go out due to the possibility of being deported,” she wrote.

According to U.S. labor data, July alone saw a drop of 467,000 foreign-born workers. This decline has now stretched across four consecutive months, signaling what some analysts call a “purge” of illegal labor in the U.S.

More economists, including those at BBVA, JPMorgan, and Goldman Sachs, warn that the trend could deepen in the second half of 2025.

Adding to the financial squeeze, a new 1% tax on U.S.-to-Mexico remittances is scheduled to begin on January 1, 2026. The Mexican government is already promoting a state-issued banking card as a workaround to avoid the tax.

Immigrants are leaving US workforce in mass.

Remittance payments US→MX plummeting, down over -2 million from a year ago.

Biggest decline by far in 30+ years – a period that includes a homebuilding depression and a 100-year financial crisis. pic.twitter.com/o49TeyLvOC

— Eric Finnigan (@EricFinnigan) August 3, 2025

Commentary:

This drop in remittances is more than an economic trend—it’s a sign that President Trump’s immigration crackdown is working as intended.

For years, the U.S. saw uncontrolled inflows of illegal immigrants, encouraged by lenient policies that turned a blind eye to illegal labor and cross-border money flows.

Now, with strong enforcement actions underway, illegal workers are returning home, and those who remain are less willing to take the risk of working in the shadows. The fear of being detained or deported is real—and it’s changing behavior.

Deportation raids and enhanced workplace enforcement are discouraging illegal employment. The result? A measurable drop in the cash lifeline that once propped up households in Mexico. This shows that immigration enforcement doesn’t just affect border towns—it disrupts the entire ecosystem that thrives off illegal labor.

This isn’t cruelty—it’s restoring law and order. For decades, Democrats called enforcement inhumane while presiding over policies that encouraged mass illegal migration. That was the real inhumanity: turning the U.S. labor market into a magnet for exploitation, crime, and strain on American taxpayers.

Now, under Trump’s renewed push for border control, we’re seeing the return of common sense. Fewer remittances mean fewer illegal workers. This is a win for working-class Americans, whose wages have long been undercut by illegal labor.

And while Mexico may struggle with the loss of billions, the U.S. is finally prioritizing its own citizens over the interests of foreign economies. That’s what real leadership looks like.

If this trend continues—and Trump delivers on his promise to carry out the largest deportation operation in history—it will mark a decisive shift in immigration enforcement and economic fairness.

The Bottom Line:

The steep decline in remittances to Mexico signals a real shift in U.S. immigration enforcement. With fear of deportation rising and jobs drying up, illegal workers are pulling back or heading home.

This is exactly what Trump promised—and the early signs show it’s working.