The Trump administration announced it will significantly reduce the fee for Americans seeking to renounce their US citizenship, cutting the cost from $2,350 to $450 beginning in April.

The new fee represents an 81% reduction and falls below the actual cost to the government for processing renunciation requests. The administration acknowledged it will take a financial loss on each application processed under the reduced rate.

The fee reduction fulfills a years-long promise from the Trump administration to reverse what it characterized as an unpopular fee increase that was implemented in 2015. The previous administration had raised the renunciation fee from $450 to $2,350, citing increased processing costs and administrative requirements.

The State Department processes citizenship renunciation applications, which require extensive paperwork, interviews, and legal procedures to ensure applicants understand the permanent nature of their decision. The process typically takes several months to complete.

Americans living abroad have long criticized the higher fee as creating a financial barrier for those seeking to renounce citizenship, particularly those who may face tax or legal complications from maintaining dual citizenship status.