Migrants from Central America living in the United States have sent more money home in the first quarter of 2025 than in previous years, with remittances increasing by around 20 percent, according to official reports. This surge in financial support is seen as a reaction to growing fears of deportation under the U.S. government’s renewed immigration policies, which threaten to disrupt the lives of millions of migrants.
Data from the central banks of several Central American countries, including Guatemala, Honduras, El Salvador, and Nicaragua, shows a notable rise in the flow of money from migrants in the U.S. to their families in these nations. Economists believe this trend is a response to heightened concerns about being sent back to their home countries due to tough immigration enforcement policies under the administration of former U.S. President Donald Trump, who returned to the White House in January 2025 on a platform promising to ramp up deportations.
In Guatemala, one of the most affected countries, the central bank recorded an impressive $5.64 billion in remittances for the first quarter of 2025. This marked a 20.5 percent increase over the same period in 2024. Similarly, Honduras saw a 24 percent rise, receiving $2.62 billion in remittances, according to its central bank. While El Salvador and Nicaragua have not yet released full data for the first quarter, early reports from January and February show significant increases in remittance flows to these countries as well, with El Salvador seeing a rise of 14.2 percent and Nicaragua 22.6 percent compared to the same months in 2024.
For these Central American nations, the money sent home by migrants is crucial for their economies. Remittances make up a significant portion of the gross domestic product (GDP) in many of these countries. In Guatemala, for example, remittances account for nearly a quarter of the country’s GDP, underlining their importance in supporting families and fueling local economies.
While the precise reasons behind the surge in remittances remain unclear, experts widely agree that it is linked to the heightened fears of deportation that have followed Trump’s return to office. Guatemala’s central bank president, Alvaro Gonzalez, attributed the increase to these fears, explaining that migrants were likely sending more money home in anticipation of potential deportation. Economic analyst Erick Coyoy echoed this view, describing the increase as “an anticipated reaction by migrants to the perceived risk of deportation.”
These concerns have grown more pronounced since January 2025, when Trump made it clear that his administration would pursue one of the largest waves of migrant deportations in U.S. history. The tough rhetoric and policies surrounding immigration under Trump have left many migrants, particularly those from Central America, anxious about their status and future in the U.S. This has created a sense of urgency among migrant workers, with many sending more money back to their families in case they are forced to return to their home countries.
In some cases, it is believed that migrants are sending money home not only to ensure that their families have financial support in case they are deported but also to help their loved ones benefit from the relative economic stability that comes with having a family member working in the U.S. While the uncertainty of the future may be driving some migrants to send more money back, others may be doing so to make sure they have a financial cushion in place should they need to leave the U.S. suddenly.
The rise in remittances also highlights the essential role that migrant workers play in supporting their families and communities back home. In many Central American countries, remittances are not just a vital source of income—they are often the difference between survival and poverty. The money sent by migrants allows families to pay for basic needs like food, housing, healthcare, and education. Without these remittances, many families would struggle to make ends meet.
For instance, in Nicaragua, remittances from both the U.S. and other countries like Costa Rica and Spain reached $909 million in the first two months of 2025. This underscores the widespread nature of migration from the region and the important financial contributions made by the Central American diaspora. The Nicaraguan central bank included remittances from Costa Rica ($68.2 million) and Spain ($48.6 million) in its reports, indicating that while the U.S. is the primary source of remittances, other countries also play an important role in supporting Nicaraguan families.
However, the situation also raises questions about the long-term impact of migration and the reliance on remittances for economic stability. Many experts argue that the over-dependence on remittances may hinder economic development in the long run. If countries like Guatemala, Honduras, El Salvador, and Nicaragua were able to create more stable, sustainable economies, they might be able to reduce the pressure on their citizens to migrate in search of better opportunities.
Despite these concerns, the reality is that many migrants still see the U.S. as their best chance for improving their lives and providing for their families. Even as they send money back home, many face uncertainty about their own futures. The U.S. immigration system has long been a source of frustration and fear for many migrants, especially those who entered the country without proper documentation.
In response to these challenges, governments in Central America have been calling on international organizations and the U.S. government to address the root causes of migration. In particular, they have emphasized the need to create more job opportunities and improve living conditions in their own countries, so that citizens are less likely to feel compelled to leave in search of a better life.
At the same time, migrant advocacy groups have urged the U.S. government to take a more humane approach to immigration, focusing on providing pathways to citizenship for undocumented migrants and addressing the issues that drive people to leave their home countries in the first place.
The increase in remittances is both a sign of the resilience of Central American migrants and a reflection of the difficult realities they face. While it offers immediate relief to families back home, it also underscores the deep challenges facing both the migrants and their countries of origin. As the U.S. continues to tighten its immigration policies, the future of remittances and the broader migration situation in the region remains uncertain.
For now, the hope is that the surge in remittances can provide temporary relief to the millions of families who rely on this financial lifeline, while the world grapples with the complex issues surrounding migration and the treatment of migrants.
