US President Donald Trump’s ambitious “One Big, Beautiful Bill” is inching closer to a final vote in the House of Representatives. The bill is considered as a cornerstone of his second-term agenda, that combines sweeping tax changes with an aggressive immigration overhaul. While it has drawn criticism from Democrats and even some Republicans over its cost and scope, the legislation could have far-reaching consequences for NRIs and immigrants living in the United States.
What does the bill mean for NRIs?
One of the most closely watched provisions for the Indian diaspora has been the proposed remittance tax. In its original form, the bill sought to impose a 5% tax on all international money transfers made by non-US citizens, including H-1B visa holders, green card holders, and other non-immigrant residents. The lack of any exemption threshold, even for small transfers, sparked strong criticism. Later, it was slashed to 3.5%.
The current version of the bill now proposes a 1% remittance tax, a significant drop from the original 5%. The new draft reads, “There is hereby imposed on any remittance transfer a tax equal to 1% of the amount of such transfer.” It also states that the sender will be responsible for paying the tax.
Although a 1% levy might seem minimal, it could add up quickly for families who regularly send money back to India for education, healthcare, or elder support. The bill also hints that routine or small-value transactions may be exempt, though it stops short of clearly defining what qualifies as “routine.”
Impact on immigrants
The bill represents one of the most aggressive immigration crackdowns in recent US history. It allocates $150 billion over four years toward immigration enforcement. Of that, $46.5 billion is earmarked for building more than 1,600 miles of new border walls and barriers. Another $45 billion will be used to expand detention centers for individuals and families, while $12 billion is dedicated to hiring 18,000 new ICE and Border Patrol officers, tripling the size of the current deportation force.
Trump’s administration plans to increase daily deportations from around 650 to as many as 3,000, a scale the country has never attempted before. To fund this, the bill proposes cuts to essential programs like Medicaid, SNAP, and clean energy initiatives, many of which support working-class and immigrant families.
Beyond physical enforcement, the bill raises financial and procedural barriers for immigrants trying to enter or remain in the US legally. Applying for asylum, once free, will now cost $1,000. Work permits will cost $550. The fee to appeal an immigration judge’s decision will jump from $110 to $900. Temporary Protected Status (TPS) applications, used by refugees and displaced persons will become ten times more expensive.
While the bill sets aside $1.25 billion to expand immigration courts and hire more judges, it fails to fix deeper issues like massive case backlogs, lack of interpreters, and limited access to legal aid. Instead, it introduces new risks: reports suggest that immigrants are increasingly being arrested outside courthouses, even while attending scheduled hearings.