State Department Reduces Fee for Renouncing US Citizenship by Almost $2K

The State Department has significantly reduced the fee for Americans seeking to formally renounce their US citizenship by approximately 80%. After facing legal challenges from various groups representing individuals looking to relinquish their citizenship, the department announced a final rule in the Federal Register on Friday, lowering the fee from $2,350 to $450.

The updated fee, which became effective immediately, had been proposed in 2023 but had not been put into practice until now. This new cost aligns with the initial fee set by the State Department when they began charging Americans for renouncing their citizenship in 2010.

Renouncing US citizenship involves a thorough and time-consuming process. Applicants must provide multiple written and verbal confirmations to a State Department consular officer, demonstrating their understanding of the consequences before taking a formal renunciation oath, which is then reviewed by the department.

In 2015, the fee was increased from $450 to $2,350 to cover administrative costs, prompted by a surge in individuals seeking to renounce their citizenship, partly due to new US tax reporting requirements that affected American expatriates.

The substantial fee hike faced opposition from organizations like the France-based Association of Accidental Americans, which primarily represents individuals living abroad who hold US citizenship by birthright. The association challenged the constitutionality of the fee through legal action, advocating for the elimination of any cost associated with renouncing citizenship.

Fabien Lehagre, the president of the Association of Accidental Americans, expressed satisfaction with the decision, stating that it acknowledges the importance of making this essential right accessible to all. He credited the victory to six years of persistent legal efforts and advocacy.

According to the association, since the announcement of the fee reduction in 2023, over 8,755 Americans paid the full $2,350 to renounce their citizenship. However, the total number of Americans who have renounced their citizenship was not disclosed by the State Department.