U.S. State Department Cuts Citizenship Renunciation Fee by 80%

The U.S. State Department has made a significant change by slashing the fee associated with renouncing American citizenship by approximately 80%. This move marks a considerable policy adjustment after facing numerous legal challenges in recent years.

The fee has been decreased from $2,350 to $450, and this new regulation was published in the Federal Register, taking effect immediately. The updated cost aligns with the amount charged when the fee was first established in 2010.

The process for renouncing U.S. citizenship remains extensive and strict. Applicants need to consistently reaffirm their understanding of the repercussions in both written and verbal formats before ultimately taking an oath before a consular officer. The decision is subsequently evaluated by the department.

Previously, the fee was raised to $2,350 in 2015 to manage administrative expenses in response to a higher volume of applications. This hike was partially prompted by more stringent U.S. tax reporting obligations impacting citizens living outside the country.

The considerable increase drew criticism from advocacy groups such as the Association of Accidental Americans, which advocates for those who possess U.S. citizenship because of being born in the U.S. but reside elsewhere. This organization legally contested the fee, arguing that it hindered individuals from exercising their right to renounce citizenship.

In light of the fee reduction, the association expressed satisfaction, calling it a crucial stride towards making the process more user-friendly. Fabien Lehagre, the group's president, stated that this decision is a result of years of legal efforts and advocacy.

Court documents indicate that since the announcement of the fee's planned reduction in 2023, at least 8,755 Americans had still paid the full cost of $2,350 prior to the repeal taking effect. However, the State Department has not disclosed the total number of individuals who have renounced their citizenship.