Strategic Initiatives
Who we represent: How many Americans are living abroad?
The United States does not maintain an official count of how many U.S. citizens live and work overseas. However, ACA’s independent research, conducted through the ACA Global Foundation and the Federal Voting Assistance Program (FVAP), estimates the total community, including military personnel to be between 5 and 6 million Americans. According to ACA's recent research Analysis of Revenue Effects of Residents-Based Taxation - American Citizens Abroad, approximately 4 million are non-military civilians, with military members and government employees accounting for an additional 1.2 million, for a total of 5.2 million.
U.S. citizens living outside the United States, often referred to as Americans abroad, Americans overseas, or expatriates - remain fully connected to the country. They can vote in federal (and in some cases state) elections, continue to pay U.S. taxes, and are still part of the U.S. population. At the same time, they face a set of challenges that are unique to living overseas - many of which are made more complex by current tax laws and regulations.
How we work: What do we do in Washington, DC?
ACA is well positioned to advocate on behalf of Americans abroad, supported by its longstanding reputation in Washington, D.C., its professional approach, and its proximity to Capitol Hill, policymakers, and key stakeholders. One of the biggest challenges in representing this community is a general lack of awareness about both its size and the issues it faces. To address this, ACA invests in research and data collection. Through the ACA Global Foundation and member surveys, we conduct research ACA Global Foundation & Research - American Citizens Abroad that helps inform and educate policymakers. With headquarters in Washington, D.C., ACA is able to maintain regular engagement with Congress and the Administration, working to educate and advocate directly with legislator with legislators on Capitol Hill.
ACA also works closely with the Americans Abroad Caucus, which has supported legislative and regulatory efforts to address many of the challenges facing U.S. citizens overseas. In addition to its policy work, ACA engages a broad grassroots network of members and supporters, particularly through write-in campaigns that help build support for key initiatives in Congress. ACA also maintains relationships with media outlets and journalists to ensure
continued visibility for these issues, and recognizes individuals in government, media, and the private sector who have made meaningful contributions through its awards ACA Awards - American Citizens Abroad program.
What are the issues for our members and the community?
Taxation
The United States taxes its citizens based on citizenship rather than residence, a system known as citizenship-based taxation (CBT), rather than residence-based taxation (RBT). As a result, U.S. citizens are taxed on their worldwide income regardless of where they live, where the income is earned, or whether it has already been taxed in another country.
Compliance
U.S. citizens living abroad are required to file annual tax returns if they meet certain thresholds, regardless of where they reside. They must also report foreign financial assets above specified thresholds under the Foreign Account Tax Compliance Act (FATCA), and file a Foreign Bank Account Report (FBAR) in addition to their tax filings.
Investments
U.S. citizens living overseas often face challenges with financial investments, particularly when dealing with foreign mutual funds and certain pension plans. These investments may be treated as Passive Foreign Investment Companies (PFICs), which can lead to complex tax implications. In addition, currency fluctuations can create further challenges for individuals earning and investing in non-U.S. currencies.
Voting & Representation
Not all U.S. citizens overseas are able to vote, particularly those who were born abroad and have never lived in the United States. Even for those who can vote, their influence within any single Congressional district or state is limited due to the dispersed nature of the population. Unlike many other countries, the United States does not provide direct representation dedicated specifically to citizens living abroad.
Social Security
On January 5, 2025, President Joseph Biden signed the Social Security Fairness Act into law, repealing the Windfall Elimination Provision (WEP), which had reduced benefits for individuals receiving foreign pensions. ACA welcomed this change after many years of advocacy. However, U.S. citizens overseas still face challenges accessing Social Security services. Many rely on Federal Benefits Units (FBUs) located at U.S. embassies and consulates. As these offices have
been consolidated, staffing reductions have made in-person assistance more limited. In addition, online tools for managing Social Security accounts are not fully optimized for users living abroad.
Medicare & Healthcare
Medicare generally does not cover care received outside the United States. As a result, eligible U.S. citizens living abroad must return to the United States to use their benefits. The coronavirus pandemic further highlighted that emergency medical services funded by U.S. taxpayers are not extended to citizens living overseas.
Citizenship
Approximately 60,000 children are born overseas each year to U.S. citizen parents. Of these, around 90% acquire citizenship at birth, while 10% do not due to residency or presence requirements that their parents have not met. The right to a nationality at birth is a fundamental human right, providing access to full participation in society and the rights that come with it.
Access to US Government Services
Many U.S. government services are not designed for use by citizens living overseas, particularly online systems operated by the IRS and Social Security Administration. There is limited outreach or proactive engagement with Americans abroad from both the U.S. government and the State Department, leaving many U.S. citizens overseas without adequate support.