The U.S. State Department has reduced the fee for renouncing U.S. citizenship from $2,350 to $450, an 80% decrease, under a new rule effective Friday. This reverts the fee to the amount first charged when the government introduced the charge in 2010.
Fee Reduction Aimed at Lowering Financial Burden
The State Department attributed the reduction to a policy decision aimed at easing the cost burden on individuals seeking a Certificate of Loss of Nationality (CLN). This certificate is issued after a person formally renounces their citizenship before a U.S. diplomatic or consular officer abroad.
The fee increase from $450 to $2,350 in 2015 was initially implemented to cover rising administrative costs due to a surge in renunciation applications. This increase came after a spike in renunciations linked to stricter overseas tax reporting requirements, including those under the Foreign Account Tax Compliance Act (FATCA).
Applications climbed from 956 in 2010 to 3,436 in 2014, with the State Department estimating about 4,661 annual renunciation applications today.
Financial Impact and Process Details
The fee reduction is expected to decrease annual federal revenue by approximately $8.9 million. Funds collected from the fee go directly to the U.S. Treasury and are not allocated to the State Department’s consular operations.
Renouncing U.S. citizenship requires applicants to appear in person abroad at a U.S. embassy or consulate, provide written and verbal confirmation of understanding the consequences, take an oath of renunciation, and await State Department approval before receiving a CLN.
Legal Challenges and Advocacy Response
Advocacy groups, including the Association of Accidental Americans, have criticized the prior fee increase and challenged its constitutionality, arguing that renunciation should carry no cost. The organization welcomed the fee cut as a positive step toward making the right to renounce more accessible.
Since the 2023 announcement to lower the fee, at least 8,755 Americans paid the higher $2,350 fee before the new rule took effect. The State Department has not disclosed updated statistics on the total number of U.S. citizenship renunciations.
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