The Trump administration has announced a dramatic reduction in the fee to renounce US citizenship, cutting it from $2,350 to $450 starting in April. The move, confirmed in a final rule published to the federal register on Friday, will see the government take a financial loss on processing each application, as the new fee falls below the actual cost of handling requests.
The number of Americans renouncing their citizenship has soared in recent years, with 2024 recording the third highest annual total of 4,820, according to Internal Revenue Service figures. Analysts attribute the rise to political changes and growing frustration among Americans overseas with complex tax rules. So-called 'accidental Americans'—those who acquired citizenship through birth or parents but have lived abroad—are required to file US tax returns annually, prompting many to seek a breakup.
The State Department acknowledged that anecdotal evidence suggested difficulties were due in part to reporting requirements. 'After significant deliberation, taking into account both the affected public’s concerns regarding the cost of the fee and the not insignificant anecdotal evidence regarding tax-related difficulties many US nationals residing abroad encounter … the department made a policy decision to propose alleviating the cost burden,' it said in a statement.
The International Association of Accidental Americans welcomed the reduction as a 'historic victory after six years of relentless legal action and advocacy.' Its founder, Fabien Lehagre, noted that since 2023, when the Biden administration announced it would reduce the fee, at least 8,755 individuals had paid $2,350, generating over $20.5m in what he called 'unjustified revenue.' He added: 'This fee reduction is a concrete first victory, but our fight to have the right to renounce recognized as a fundamental constitutional right continues.'
