Why It Matters

Remitly Global Inc. faces a critical juncture as federal policy threatens its core business model. The company is lobbying against the newly enacted 1 percent federal remittance tax—effective January 1, 2026—while pushing for legislative solutions to "de-risking," where banks restrict services to money transmitters.

The stakes are substantial: remittances to developing countries are projected to reach $690 billion in 2025, yet global transfer costs average 6.49 percent. By hiring Sarah Timoney Paul, a former Senate Banking Committee staff member, Remitly Global is signaling it will aggressively try to shape policy outcomes on remittance affordability and payment system access—issues where congressional momentum exists but legislative outcomes remain uncertain.

By the Numbers

Remitly Global Inc. reported $140,000 in fourth quarter 2025 lobbying expenditures using in-house staff. The company has $1,079,250 in cumulative spending across 11 total disclosures since November 2023.

Sarah Timoney Paul, Remitly’s sole in-house lobbyist, brings a decade of Capitol Hill experience as a former Senate Banking Committee Professional Staff Member and Acting Chief of Staff to Sen. Dean Heller. She previously represented Intuit Inc. ($19.28 million across 22 disclosures) and Uber Technologies Inc. ($1.26 million).

This represents a strategic shift from previously using Mindset Advocacy LLC through a related entity, enhancing Remitly’s institutional access and advocacy agility.

The Agenda

Remitly Global Inc. is lobbying Congress on four core issues tied to its remittance business model:

The company is combating "de-risking"—banking practices restricting services to money transmitters—while advocating for nonbank access to modernized payment infrastructure like the Federal Reserve’s FedNow system. Remitly is also pushing to reduce international payment barriers and promote financial inclusion for immigrant communities, plus seeking greater equity on merchant interchange fees.

Congress is actively debating the newly enacted federal remittance tax—a direct hit to Remitly’s cost proposition. Meanwhile, bipartisan support is building for the Fair Access to Banking Act (H.R. 987 and S.401), which would prohibit banks from denying services to lawful money transmitters.

Broader Context

The Congressional Research Service published a major report in January 2025 elevating de-risking as an established congressional concern. Other legislative opportunities align with Remitly’s goals, including the Remittance Expense Minimization and Integrity for Transfers Act (H.R. 4274) and the African Diaspora Investment and Development Act.

However, the Fund and Complete the Border Wall Act includes provisions to increase remittance transfer fees—directly countering Remitly’s affordability mission.

Between The Lines

The Senate Banking Committee has prioritized combating de-risking, while members like Sen. Tim Scott have actively worked against de-banking practices. Rep. Bryan Steil has convened roundtables on modernizing U.S. payment systems, though Sen. Angus King has urged caution to protect unbanked populations.

Competitive Landscape

Remitly operates in a crowded advocacy space. A related entity, Remitly Inc., separately lobbies through Mindset Advocacy LLC on nearly identical issues, indicating a multi-pronged strategy. The Electronic Transactions Association serves as a key coalition partner on digital payment regulation.

However, the American Bankers Association Card Policy Council represents banking interests opposing interchange fee reforms—directly conflicting with Remitly’s merchant advocacy goals.

The Bottom Line

Remitly Global Inc. is intensifying its lobbying push at a consequential policy moment. The newly enacted 1 percent federal remittance tax creates immediate operational pressure, while bipartisan momentum builds on de-risking solutions. Paul’s Senate Banking Committee background positions Remitly to directly influence these high-stakes debates with key lawmakers.

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