Remittances to Mexico plunged by over one billion U.S. dollars in June, a sharp 16 percent drop that is rattling household budgets and threatening one of the country's most vital economic lifelines.
Two years ago, Leonor Perez's husband left their Mexico City home and crossed into the United States undocumented, lured by smugglers' promises of earning ten times his construction wage and sending money back to build a better life.
"The remittances are very important, they sustain our family, fund the construction of our house, and allow us to establish a business, so that when he comes home, we have more stability than when he left," she said.
However, in 2025, the plan began to fray.
"He used to send at least 600 dollars, 800 if he had a good month. But now I'm getting 400 dollars a month. That's just enough to live on. All our other projects are on hold," she said.
Leonora isn't alone. Remittances to Mexico are down since Donald Trump's return to the White House.
June of this year saw remittances sent to Mexico drop by more than one billion dollars compared to the same month last year - from 6.2 billion U.S. dollars down to 5.2 billion U.S. dollars - an enormous drop for one of this country's most important economic drivers.
Remittances historically contribute three to four percent of Mexico's GDP - more than tourism or even oil, said Ulises Tellez, CEO of Pagaphone, a fintech company specializing in digitalizing that economic flow.
He said the U.S. crackdown on undocumented migrants is behind the drop.
"Law enforcement in the U.S. regarding labor [makes] migrants more cautious, obviously, and also they have less money, because there are less jobs. The second issue is about policy in the U.S. As you know, they have been talking about levies for remittances, which makes the migrants uncomfortable," he said.
The difficulties faced by migrants in America are having direct impacts on those who depend on them in Mexico.
"Remittances are a lifeline for many Mexican households. So unfortunately, the most vulnerable will be the first ones to be affected," Tellez said.
Families that depend on money from abroad are under greater strain than ever. Leonor says her biggest fear now is that her husband will be caught in a migration raid and detained before the next remittance arrives, however reduced it might be.
Remittances to Mexico drop, raising concerns over impact on overall economy
Remittances to Mexico drop, raising concerns over impact on overall economy
