A new draft of the "One Big Beautiful Bill", released on June 27, shows big changes from the earlier version passed by the House of Representatives. The tax was originally proposed at 5 per cent in the House bill under the Trump administration before being reduced to 3.5 per cent and now further lowered to 1 per cent in the Senate draft.
But crucially, this tax will only apply to cash or similar physical payments handed over to money transfer providers. Transfers done through bank accounts or debit and credit cards issued in the US won’t be taxed. The bill says the tax is “limited to cash and similar instruments… only to any remittance transfer for which the sender provides cash, a money order, a cashier’s check, or any other similar physical instrument.”
https://www.business-standard.com/world-news/us-senate-lowers-proposed-remittance-tax-to-1-spares-bank-transfers-125062800890_1.html
Appears under this revision the tax would only apply to poor migrant workers who use Western Union to send their salaries back to Mexico to feed their kids.