President Donald Trump issued an executive order on May 20 that may have virtually assured his victory in the upcoming midterm elections later this year. The order directs federal agencies to reform and revise systems used by Latin American immigrants to wire money home for family support.
Tens of millions of Latin American immigrants currently send nearly $93 million annually to families abroad, with informal cash remittances pushing total annual transfers beyond $200 million. Companies like Western Union typically charge fees of 8% or 9% for these services. Trump’s executive order will slash those costs and address fraud targeting low-income workers who rely on these channels to share the fruits of their labor with families in need.
For a president frequently criticized as anti-immigrant, this move represents a significant political strategy designed to improve outcomes for legal immigrants who follow established rules. Current commission rates for remittances run at 8% or 9%, but competitive providers offer similar services at half that cost. Effectively, the order grants Latinos sending money home a pay raise of at least 5% to 7%. Recent polling shows Trump has neared the 50% threshold among Latino voters, and with this action, his path to securing decisive majorities in key states—including California, Texas, Florida, New Mexico, and Nevada—appears clear.
