Money sent home by Mexican workers abroad dropped sharply in April, making this third straight monthly decline and raising concerns over a proposed US tax that could further reduce this vital income stream.

Data released by the Bank of Mexico this week shows that Mexican families received $4.76 billion in remittances in April—a $380 million drop from March’s total of $5.14 billion. Compared to April 2024, this is a 12.1 percent decrease, the largest year-over-year fall since September 2012, says Reuters.

Last year, remittances to Mexico totaled $64.7 billion, representing about 4 percent of the country’s gross domestic product.

President Claudia Sheinbaum addressed the issue during a news conference. “First, let’s do an analysis of why remittances fell these last three months. And second, we will insist on (the United States) not taxing remittances,” Sheinbaum said.

She announced that a diplomatic team would travel to Washington on Wednesday to press US lawmakers to remove the proposed 3.5 percent remittance tax from budget talks.

That tax was included in the House version of the One Big Beautiful Bill Act and is projected to raise $22.2 billion for the US government between 2026 and 2034, according to the Joint Committee on Taxation.

Activists in the US have launched efforts to oppose the measure. Nearly 1,000 people have signed a petition on Change.org calling on Republican senators to block the tax.

“We write to urge you to reject Section 112105 of the One Big Beautiful Bill, which proposes a harmful 3.5% tax on the remittances we send to support our families in Mexico,” the petition states. “These are not luxury transfers. They are modest amounts used to cover food, medicine, and shelter. Taxing them would punish those who are already struggling the most.”

The Bank of Mexico reports the average remittance is about $385, says KGET, an NBC affiliate.

Some analysts attribute the downturn to fears among undocumented immigrants who are holding onto money in case of deportation or avoiding money-wiring services due to increased immigration enforcement. Others point to broader economic uncertainty driven by the Trump administration’s tariff policies.

Opponents of the tax warn that decreasing remittances could fuel more illegal immigration.

“It is important to note that remittances play a quiet but powerful role in reducing irregular migration. By helping our families meet basic needs at home, we give them the chance to stay rooted in their communities, making them far less likely to undertake the dangerous journey north,” the petition adds.