Understanding the impact of Trump’s Big Beautiful Bill—and the opportunity to invest differently, together.
This year, the U.S. passed a major piece of legislation with far-reaching consequences for immigrant communities: the One Big Beautiful Bill Act. Tucked inside is a quiet but powerful clause—a 1% federal excise tax on remittances sent outside the U.S., beginning in 2026.
For the millions of immigrants who send money back home, this isn’t just a financial inconvenience. A significant portion of African and LATAM diaspora families feel this impact. It’s a reminder of how fragile global capital flows can be. These flows are often extractive, especially when they depend on everyday people working across borders to support their loved ones.
But here’s the thing: where there’s pressure, there’s also potential. This moment invites our communities to think differently. We should consider how we move money. We must ponder how we grow wealth. We need to focus on investing in resilience rather than reaction.
When Remittances Are Taxed, What’s at Stake?
Remittances from African immigrants in the U.S. total billions annually, with countries like Nigeria, Kenya, Ghana, and Ethiopia among the top recipients. These funds go directly to pay for essentials—food, healthcare, school fees—not luxury goods.
Under the new law, each remittance transaction will be taxed 1% at the federal level. Transfer fees, foreign exchange margins, and service charges already add up significantly. These contributions result in 6–10% in total costs.
The World Bank estimates that a 1% increase in remittance costs reduces formal flows by about 1.6%, often pushing people toward informal channels that are riskier and less traceable.
The result? More hidden transactions. Less financial inclusion. Fewer opportunities to invest transparently and grow generational wealth.
For African Diaspora Communities, It’s Time to Rethink Capital
This policy change is not just a setback. It’s a signal that the current system isn’t designed for us. And that’s why we must design something better.
At Bitesize Capital, we believe:
- Capital doesn’t have to be extractive.
- Wealth doesn’t have to be individual.
- And investing doesn’t have to feel out of reach.
This is the time to build and strengthen investment communities. These are spaces where immigrants, educators, workers, and first-generation wealth-builders can learn. They can also pool assets, and invest with purpose.
Why Community-Based Investing Is the Way Forward
Here’s what’s possible when we move from sending money alone to investing together:
Pool capital for impact
Instead of sending small remittances individually, diaspora groups can pool funds to invest in:
- Local housing co-ops or land trusts in home countries
- Small business loans for family and neighbors
- Green energy or water projects with community ROI
Build shared wealth, not just survival
Community investing transforms one-time support into long-term income generation. It encompasses rental properties, shared agricultural equipment, and digital skills training centers.
Stay rooted in values
Instead of reacting to systems that penalize our support, we can design values-based investment vehicles that prioritize:
- Economic mobility
- Climate resilience
- Access to healthcare and education
- Transparent ownership structures
What You Can Do Next
- If you send remittances, talk to your family about opportunities to turn some of that money into joint investments.
- If you’re part of a diaspora community, consider forming an informal investment club—or join one.
- If you’re an investor, look beyond traditional portfolios. Ask where your capital is needed most—and where it can do the most good.
Let’s Build Together
This remittance tax may slow us down—but it won’t stop us.
If you’re building community-centered wealth tools, diaspora investment programs, or ethical finance platforms, we want to learn with you. Let’s co-create capital systems that are not just more efficient, but more just.
The future of investment is not top-down. It’s peer-to-peer, heart-first, and community-powered. Let’s build it—bit by bit.
Bitesize Capital 