US One Big Beautiful Bill Act: In a narrow 215–214 vote, the US House of Representatives passed President Donald Trump’s sweeping new tax proposal, dubbed the ‘One Big Beautiful Bill Act’. The Bill, which now heads to the Senate, promises a massive overhaul of existing tax laws — including an extension of Trump’s 2017 tax cuts — along with controversial changes to federal spending and immigration-related fees.
While the Bill contains benefits for some segments of the American population, it raises red flags for low-income earners, immigrants, and foreign workers. Non-Resident Indians (NRIs) — especially those on temporary work visas or seeking green cards — may find themselves caught in the crossfire.
How will the new Bill impact NRIs?
The new bill seeks to make the 2017 tax cuts permanent. According to the nonpartisan Tax Policy Center, the average tax cut in 2026 would be around $2,800, but nearly a quarter of those benefits would go to the top 1% — individuals earning over $1.1 million annually.
Meanwhile, low-income Americans could lose out. Those earning between $17,000 and $51,000 annually could lose around $700, while people earning below $17,000 could see cuts of more than $1,000, largely due to reductions in Medicaid, food assistance (SNAP), and student loan support.
For NRIs, especially early-career professionals in tech or education sectors earning under $50,000 annually, these changes could mean higher living costs and less access to support services.
Immigration fees and restrictions – A blow to NRIs?
Perhaps the most direct impact on NRIs comes from new immigration-related fees and restrictions. The bill proposes:
- A $1,000 application fee for asylum seekers
- $500 work permit renewal fees every six months
- Hundreds of dollars in appeal fees for immigration court decisions
These could add financial burdens on NRIs navigating the immigration system — especially those seeking H-1B extensions, green cards, or work permits for dependents.
In addition, states would be discouraged from using local funds to provide Medicaid to undocumented children, affecting mixed-status families and future generations of immigrants.
Child tax credit and “MAGA” accounts
The Bill increases the Child Tax Credit to $2,500 until 2028, though stricter eligibility rules mean that 4.5 million children could lose out — particularly those in immigrant families where one parent lacks a Social Security number.
A new initiative introduces “MAGA” (Money Accounts for Growth and Investment) savings accounts, giving $1,000 per child under 8 for qualifying parents — another benefit that may be harder for immigrant families to access due to documentation requirements.
Indirect impacts on NRIs and India-US Ties
Other provisions — such as tax deductions only for US-made vehicles, and exemptions from taxes on overtime pay — reflect a strong “America First” economic stance. These policies, while aimed at boosting domestic growth, could indirectly affect NRIs working for international companies or Indian firms operating in the US.
Further, proposed student loan restrictions would eliminate graduate loans, affecting Indian students aspiring for advanced degrees in the US.
The Bill still needs Senate approval, where it may face revisions. But for now, NRIs should prepare for a potentially harsher tax and immigration environment if Trump’s “beautiful” tax bill becomes law.