A growing share of American dollars is leaving the country each year through foreign remittances, and a new analysis places New York among the top states driving that outflow. The study, released by Ria Money Transfer, highlights New York as one of the nation’s three largest sources of money sent abroad, a trend some economists warn represents a quiet but significant drain on local and national economies.
Nationally, the outflow of American-earned money has exploded. Recent research shows at least $93 billion left the United States in 2024, but analysts who track unofficial and under-reported transfers warn the real number is far higher—potentially $200 to $230 billion siphoned out of the country every year. Federal data confirms the same trend: for decades, more and more U.S. income has been funneled overseas, creating a growing financial drain on the nation’s economy.
Critics argue that this money, once earned in the United States, is effectively removed from the domestic economy and spent abroad, reducing local spending, business activity, and tax revenue.
Based on national totals and New York’s share of incoming remittance volume, economists estimate that New York alone may send between $7 billion and $12 billion overseas each year. That range aligns with the state’s demographic profile and its position as home to some of the country’s largest foreign-born communities. The Ria analysis reinforces this scale, identifying New York-to-Colombia as one of the strongest state-to-country corridors in the nation.
Concerns about outbound financial flows have intensified in the wake of high-profile fraud cases involving taxpayer-funded benefits. In Minnesota, a sweeping federal investigation revealed that nearly $1 billion intended for children’s meal programs were illegally diverted, with portions allegedly funneled overseas and, according to prosecutors, possibly reaching Somali terrorist organizations. Critics warn that such cases underscore how American tax dollars, not just personal remittances, can end up supporting foreign networks.
While remittances serve vital family-support roles abroad, New York’s substantial outflow raises economic questions at a time when the state faces rising costs, shrinking tax bases, and long-term fiscal pressures.