Washington, D.C. – U.S. President Donald Trump’s sweeping tax-and-spending legislation, dubbed the “One Big, Beautiful Bill,” is headed for a final vote in the House of Representatives after narrowly passing the Senate earlier this week. The legislation, which has been hotly debated in Congress for months, could significantly reshape U.S. fiscal and social policies—and will directly impact millions of Indian nationals living in the United States.
One of the most closely watched provisions of the bill involves the taxation of foreign remittances. Earlier versions of the legislation had proposed a steep 5 per cent tax on international money transfers. Following sustained criticism from immigrant communities and bipartisan concerns, the revised bill released on June 27 reduced the tax rate to 1 per cent—a major relief for Indian nationals sending money back to family members in India.
The tax will apply to all remittances made via cash, money orders, or cashier’s checks. However, the bill makes key exemptions: remittances sent from U.S. financial institution accounts or those funded by U.S.-issued debit or credit cards will not be taxed. This distinction is expected to spare a significant portion of everyday transfers made by the Indian diaspora.
The legislation specifically affects non-citizen U.S. residents, including Green Card holders, H-1B and H-2A visa holders, international students, and other temporary residents. Nearly 4.5 million Indian nationals and persons of Indian origin currently live in the U.S., and the revised remittance tax is expected to ease the financial burden on this large and economically active community.
Although the bill is still facing internal dissent from both Republicans and Democrats over broader fiscal concerns—including its projected $3 trillion addition to the national debt and cuts to social welfare programs—this final revision has won over some lawmakers previously opposed to the remittance tax.
If passed, the bill will mark a significant milestone in President Trump’s second-term agenda, with broad implications for U.S. economic policy and immigrant households alike.