The national government is preparing financial education measures for overseas Filipino workers (OFWs) in anticipation of a potential 3.5 percent tax on remittances imposed by a bill approved by the United States House of Representatives.

Department of Migrant Workers (DMW) Secretary Hans Cacdac disclosed that the department is coordinating with the Department of Finance and the Department of Foreign Affairs (DFA) to prepare for the measure’s possible impact on Filipino workers in the US.

“We are preparing advice and programs that we can offer to OFWs not just on the matter of the proposed remittance tax, but also in relation to the strengthening of the peso and the observation that the dollar value earned by our countrymen has weakened because of the strong peso, which is good for our economy, right?” Cacdac said.

“But nevertheless, we are rolling out a series of financial advice and education for our fellow Filipinos,” he added.

Cacdac also said that it was premature to speculate or raise alarm over the proposal but assured that the government would roll out financial education programs to help OFWs prepare for any future policies affecting remittances.

The DMW secretary affirmed close collaboration with Finance Secretary Ralph Recto and DFA Secretary Tess Lazaro.

The proposed 3.5 percent tax on remittances — initially at 5 percent — is part of the “One Big Beautiful Bill” that passed the US House of Representatives in May with a 215-214 vote. The bill still requires approval from the US Senate. If enacted, the tax would apply to all international money transfers made by non-US citizens, including green card holders and H-1B visa holders, starting in 2026. There is no minimum transaction limit, meaning even minimal transfers would be taxed.

In a separate development, the DMW chief reported that no Filipinos have been affected or harmed in Los Angeles or the Western United States amid ongoing protests against Immigration and Customs Enforcement during recent immigration raids in the Los Angeles area.

“We are in close coordination with our OFWs in L.A.,” Cacdac said.

“Again, our workers, our OFWs, have been known to be law-abiding citizens and will always observe host country laws and regulations. What matters to us is that they are protected and secure, and so far, we have not received any reports of OFWs in L.A. or the Western United States being adversely affected or harmed,” he added.