State Department Reduces Citizenship Renunciation Fee by 80%

The U.S. State Department has implemented a substantial reduction in the fee for Americans wishing to formally renounce their citizenship, lowering it from $2,350 to $450—an approximately 80% decrease. This change, effective immediately following its publication in the Federal Register, fulfills a promise made in 2023 that had not been previously enacted. The new fee returns to the original amount charged when the State Department first instituted the fee in 2010.

Newsweek

The fee increase in 2015, which raised the cost from $450 to $2,350, was justified by the State Department as necessary to cover administrative expenses amid a surge in renunciation requests. This surge was partly driven by new U.S. tax reporting requirements, such as the Foreign Account Tax Compliance Act, which many expatriates found burdensome. The increased fee faced significant backlash, particularly from advocacy groups like the France-based Association of Accidental Americans, which represents individuals who hold U.S. citizenship solely due to their birth in the United States but have lived abroad for most of their lives.

Newsweek

The Association of Accidental Americans has been at the forefront of challenging the high renunciation fee through multiple lawsuits, arguing that there should be no cost associated with renouncing citizenship. Their president, Fabien Lahagre, stated, “This victory is the direct result of six years of relentless legal action and advocacy.” The group reported that since the announcement of the fee reduction, at least 8,755 Americans had already paid the higher fee to renounce their citizenship.

The IndependentNewsweekState Department slashes fee to renounce US citizenship by 80% to $450

The State Department characterized the fee reduction as a policy decision aimed at alleviating the financial burden on individuals seeking a Certificate of Loss of Nationality (CLN). Officials noted that while the new fee does not cover the full costs of processing renunciations, it was set to balance the need for some cost recovery with the goal of not deterring individuals from seeking CLN services. The department rejected calls for refunds, fee waivers, or retroactive relief.

Newsweek

Despite the fee reduction, some critics continue to argue that any fee for renouncing citizenship is unconstitutional. The ongoing legal challenges highlight the contentious nature of citizenship renunciation in the context of U.S. tax laws and the treatment of Americans living abroad.

State Department slashes fee to renounce US citizenship by 80% to $450

Attention is expected to return to the courts, where at least one legal challenge regarding the constitutionality of the renunciation fee remains unresolved. This change may also reignite discussions about U.S. citizenship, taxation, and the treatment of expatriates in future policy considerations.

Newsweek

• “This victory is the direct result of six years of relentless legal action and advocacy.” — Fabien Lahagre, President of the Association of Accidental Americans

State Department slashes fee to renounce US citizenship by 80% to $450

• “This action is being taken to help alleviate the cost burden for those individuals who decide to request CLN services by returning to the below-cost fee that was in place from 2010–2014.” — U.S. State Department Federal Rule

Newsweek