On this Tax Day, we’re sharing an update on the Residence-Based Taxation for Americans Abroad Act, originally introduced as H.R. 10468.

The bill is still moving forward, but much of the work is taking place behind the scenes. Congressional staff, legislative counsel, and the Joint Committee on Taxation continue to refine the legislative language and work through the details required for reintroduction. While that process can feel slow from the outside, it is also a sign that the legislation is still receiving serious attention.

The encouraging news is that there continues to be engagement and commitment in Congress to advancing the legislation. The bill itself has continued to evolve, with substantial revisions aimed at making the proposal clearer, stronger, and more durable.

We know many Americans abroad are eager for progress and hopeful that the bill advances, especially for those considering renouncing citizenship, following the recent fee drop. Those feelings are understandable. But the clearest signal right now is that the bill is still active and still viewed by its backers as worth advancing.

Democrats Abroad continues to engage with Congressional stakeholders to identify Democrats to co-sponsor the bill to make it bipartisan. After all, this is not a partisan issue but something that impacts all U.S. citizens living outside the United States.

On a day that reminds so many Americans abroad why reform is needed, we wanted to share this update and reaffirm that the effort to move toward residence-based taxation is still very much alive.

We continue to follow developments closely and will keep you informed.

On Thursday, March 12, 2026, the U.S. State Department announced a fee reduction for renouncing U.S. citizenship from the current amount of $2,350 to $450 to begin on April 12, 2026. $450 was the cost to renounce from 2010-2014 before the State Department raised the fee from 2014 to present day. The State Department has reduced the fee after pressure and a lawsuit from L'Association des Américains Accidentels (AAA). The lawsuit was filed on the basis it has “violated the U.S. Constitution and international law by charging a fee for individuals to renounce their American citizenship.”

In 2023, the State Department ran a comment period to solicit public feedback in its consideration to reduce the renunciation fee. Democrats Abroad ran a campaign encouraging Americans abroad to submit their individual comments to raise awareness that the increase in renunciations was due to the pain and suffering caused by the U.S. citizenship based tax system. The final rule from the State Department confirms that the comments received by Democrats Abroad members and Americans abroad-at-large were heard and entered into official record. 

The most important takeaway from the State Department’s final rule is not just the fee reduction itself. In the government’s own words, the Department took into account “not insignificant anecdotal evidence” of the tax-related difficulties faced by Americans abroad, including in part because of FATCA. The rule further acknowledges that most commenters did not want to give up their citizenship at all. They wanted to remain U.S. citizens, but found that worldwide taxation, compliance costs, and ordinary financial barriers abroad had made that status increasingly unworkable. Reducing the renunciation fee addresses one symptom. It does not solve the underlying problem. Only Congress can do that through residence-based taxation.

We thank everyone who participated in this public comment in 2023. It is hugely beneficial in our tax advocacy work to have these comments on official record with the U.S. government.

More info:

• March 12, 2026 U.S. State Department final ruling on renunciation fee reduction
• October 12, 2023 Democrats Abroad Action Share Why You Shouldn’t Have to Renounce Your Citizenship

The Democrats Abroad Taxation Task Force is proud to announce our 2026 Tax Webinar Series Wednesdays from January 14 to March 4!

• Jan 14 - How To Survive Tax Day As An American Abroad 
• Jan 21 - FREE Demystifying Taxes and Voting For Americans Abroad 
• Jan 28 - FREE Clarifying Birthright Citizenship and the Child Tax Credit for American Families Abroad 
• Feb 4 - Retirement and Taxes for Americans Abroad 
• Feb 11 - How to Avoid Double Taxation for Americans Abroad 
• Feb 18 - How To Invest For Americans Abroad & Dual Citizens 
• Feb 25 - How to File the FBAR for Americans Abroad 
• Mar 4 - How to Catch Up on Filing Tax as an American Abroad