A controversial new remittance tax proposal in Congress has raised concerns nationwide, but Guam’s delegate is assuring island residents it won’t apply here. Guam delegate James Moylan confirmed last week that the proposed 1% federal tax on money sent abroad from the US mainland does not extend to Guam.

Moylan says he reached out directly to the congressional research service, which clarified that the tax is structured as an excise tax, not an income tax, meaning it doesn’t fall under provisions that apply to Guam.

The proposal, part of the sweeping budget reconciliation plan known as the "One Big Beautiful Bill," sparked concern across the island, especially among families who send financial support to loved ones overseas. Acting Governor Joshua Tenorio called the measure “unfair and discriminatory,” warning it would penalize legal residents on Guam for helping their families survive.

Moylan echoed those concerns, but reassured residents that Guam is exempt. Still, the delegate said he understands the fear the measure has caused, especially for H-2b workers who regularly send money home.

The proposal’s original version called for a 5% fee but has since been scaled down to 1%.

Moylan says he’ll continue monitoring the bill.