Tennessee officials were sued again, marking five laws passed by the state legislature in 2026 facing legal challenges.
The latest lawsuit filed by the Financial Technology Association challenges the legality of a new law that would impose a $10 fee and 2% tax on international money transfers.
The law was passed as part of state Republicans’ “Immigration 2026” agenda, coordinated by House Speaker Cameron Sexton and White House Deputy Chief of Staff Stephen Miller. The international money transfer tax is designed to make it more expensive for immigrants to send money back home, which they often do to support families they left behind when coming to the United States for work.
The Financial Technology Association, in its filing in Davidson County Chancery Court, argued the new law discriminates against a specific transaction, violating the Commerce Clause of the U.S. Constitution. The association is made up of two dozen companies, like Amazon, PayPal, SoFi and Stripe.
Tennessee officials have faced an increasing number of lawsuits over the years as lawmakers have become more comfortable challenging federal laws and targeting localities. Lawmakers have also increased the state Attorney General Office’s budget to fight these suits.