House committee carries over controversial legislation to tax international wire transfers

March 7, 2025 – MONTGOMERY, AL. – The Alabama House of Representatives Ways and Means Education Committee carried over a controversial bill, opposed by immigrant rights groups, that would have put a fee on international wire transfers. The move was touted as an anti-illegal immigration bill.

House Bill 297 (HB297) is sponsored by State Representative Jennifer Fidler (R-Fairhope).

Fidler said that the wire transfer fee would affect individuals who are using a service such as Western Union, MoneyGram, etc. to make cash transfers overseas.

"PayPal and Venmo would not be affected or any transaction originating from a bank or credit union," Fidler explained. "The fee is 4% on money going out internationally."

Fidler explained that those proceeds will go back to the county where the transaction originated. A portion of the funds will go to support the hospital in the county. If there is no hospital in the county it goes to the hospitals within a 50-mile radius of the county. If there is not a hospital within 50 miles of the county it would go to the health department.

"There is a sunset provision," said Fidler. "The expected revenue is no less than $10 million. If you pay taxes in this state, you are eligible for a tax credit to get the money back."

Rep. Jamie Kiel (R-Russellville) said, "It does not include e-commerce, banks, or wire transfers associated with real estate transactions. It does not include credit or debit card transactions."

Rep. Brock Colvin (R-Guntersville) said, "Representative Fidler I want to thank you for bringing this bill. Oklahoma is the only other state who has tried this, and they raised $14 million the first year."

Colvin said that part of the money will go to the local schools to cover the cost of providing English as a second language instruction.

"Albertville School System is 30% ELL (English Language Learner). Crossville elementary and high school are 90% ELL," said Colvin.

Colvin said that he learned about this on a visit to the border with Mexico. The cartels charge people $10,000 a head to cross the border and, in many cases, the illegal immigrant is sending money back to the cartels.

A Democratic representative disputed that comment and said that they are sending the money back to their families for the most part.

Fidler said that illegal immigration impacts many schools across the state differently.

Fidler said, "Only 3% at Fairhope are ELL; but 30% at Summerdale are (both schools are in Fidler's native Baldwin County)."

Rep. Barbara Drummond (D-Mobile) said that she has been contacted by a small business owner who owns several of these wire transfer businesses and his business would be impacted by the fees. Drummond said that neighboring states do not have this fee so Alabama will lose this business to other states. Grover Norquist – who opposes tax increases nationally – opposes this legislation which is simply a tax increase.

"This would hurt small businesses," Drummond said.

Rep. David Faulkner (R-Mountain Brook) said, "The business is going to pass on the fee to the customer."

Faulkner also expressed concerns that the fee would cause Alabama to lose wire transfer business to other states.

Rep. Danny Garrett (R-Trussville) chairs the committee.

Garrett said that since there is so much confusion on the bill that he is carrying it over until the next meeting of the committee (March 12).

This legislation is being opposed by the Alabama Coalition on Immigrant Justice and the Alabama chapter of the American Civil Liberties Union. Dozens of ACIJ members and supporters were on hand at the meeting to show their opposition and to lobby legislators to vote no; but they did not call a public hearing.

The Alabama Legislature is limited to a maximum of 30 days in a regular session. If the committee ultimately votes to give HB297 a favorable report it would still have to be considered by the full House of Representatives – where there is likely to be opposition.

Wednesday was day 12 of the 2025 Alabama regular legislative session.

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