The US House of Representatives has passed the ‘One Big, Beautiful Bill Act’ — a sprawling tax and spending package that reflects President Donald Trump’s economic vision.
For Indian residents and non-resident Indians (NRIs) living in America — especially those sending money back home — the bill could trigger a cascade of consequences. By increasing the federal deficit by an estimated $3.5 trillion over a decade, the legislation risks pushing up interest rates and strengthening the US dollar.
As the bill moves to the Senate — where Democrats have vowed to block or rewrite it — its potential impact on Indians living in the US is coming under increasing scrutiny. Along with rising remittance costs, the Bill focuses on shrinking student aid, healthcare cuts, and strains on low-income immigrant families.
What is the “One Big, Beautiful Bill Act”?
The Bill is the centerpiece of Trump's domestic policy agenda that could define his second term in the White House.
It proposes:
- A 10-year extension of Trump’s 2017 tax cuts – permanently extends reduced tax rates for individuals and corporations, maintains the 20% pass-through income deduction for small businesses
- Deep cuts to federal spending, particularly on social safety net programs like Medicaid, food assistance (SNAP), and housing subsidies
- Rollbacks or structural changes to Obamacare (Affordable Care Act), Medicare expansion, and federal student loan programs
Tax policy changes (Extension of Trump’s 2017 tax cuts):
- H-1B and other skilled visa holders, often earning six-figure salaries, benefitted from lower federal tax brackets and higher take-home pay under Tax Cuts and Jobs Act (TCJA). The extension means continued relief for such individuals.
- Dual-income Indian families will continue to benefit from the doubled child tax credit and higher standard deduction.
- Indian-owned small businesses - pass-through entities (LLCs, sole proprietors, S-corps) – will retain the 20% deduction on qualified income — a huge boost for Indian restaurateurs, IT consultants, and franchisees.
The bill includes a provision to impose a 5% tax on all international money transfers made by non-US citizens, including those on non-immigrant visas like H-1B and green card holders. If enacted, this tax would be withheld at the point of transfer, with no exemption threshold, meaning even small remittances would be subject to the tax.
The 1,116-page legislation includes a section on remittances which clarifies that the proposed 5 percent levy will not apply to transfers made by a 'verified US sender'; that is, individuals who are US citizens or nationals.
This new law is expected to cause a severe financial blow to nearly 45 lakh Indians living in the US, including nearly 32 lakh of Indian origin.
Estimates suggest that Indians in the US remit approximately $32 billion annually to India. A 5% tax on these remittances could result in an additional $1.6 billion in taxes paid by the Indian community each year.
For individual senders, this means that for every $1,000 sent to India, an additional $50 would be paid in taxes. Over time, these costs could add up significantly, affecting the financial well-being of many families who rely on remittances for their daily expenses, education, and healthcare.
Cuts to Medicaid and Obamacare Subsidies
Non-citizen Indians on green cards or long-term visas who rely on Medicaid (e.g., elderly parents under sponsorship or low-income dependents) could lose coverage.
Indians working in gig economy/contract roles who buy insurance via ACA exchanges may see premium subsidies shrink or vanish.
Students and newly arrived immigrants could be priced out of affordable health care.
Reduction in federal student aid and loan subsidies
The bill slashes Department of Education funding and proposes converting need-based aid to loans and capping income-driven repayment plans.
Indian international students (especially those pursuing master’s or PhDs) could see fewer on-campus job opportunities and higher debt burden if federal aid systems are restructured.
Second-generation Indian-Americans from middle-income families may struggle with college costs without subsidized loans or grants.
Food assistance and housing subsidy cuts
The bill includes steep reductions in SNAP and housing support, arguing that such benefits encourage dependency.
Low-income immigrant families in urban centers like New York or California — including those transitioning between jobs — may find it harder to qualify for food stamps or rent assistance.
Elderly Indian immigrants under family sponsorship who depend on subsidized housing could face evictions or long waitlists.
What happens next?
The bill faces an uphill battle in the Senate. Republicans and swing-state senators may demand revisions to soften cuts to health care and education.
If passed in its current form, expect immediate legal challenges and budget fights in state legislatures, especially in blue states like California and New York.
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