Sending money from the United States to India may soon become more expensive if a proposal from President Donald Trump is enacted. The legislation, titled the “One Big Beautiful Bill,” spans over 1,100 pages and includes sweeping tax reforms and government spending cuts. It passed the House of Representatives on May 22 and is now on its way to the Senate, where a vote is anticipated in late June or July.
A key provision in the bill proposes a 3.5% tax on international remittances sent by non-U.S. citizens, a move that could significantly impact the Indian immigrant community—one of the largest in the country. The initial proposal suggested a 5% tax, but it was later reduced during negotiations.
If passed, this new tax would apply to green card holders, temporary visa holders, and international students —essentially anyone who is not a U.S. citizen. These individuals would be required to pay the 3.5% fee when transferring money abroad. U.S. citizens, on the other hand, would be exempt or may be able to claim a credit during tax season when using approved remittance services.
This proposed policy could massively affect the 2.9 million Indian immigrants currently living in the U.S. (as of 2023), who make up around 6% of the nation’s total foreign-born population, according to the Migration Policy Institute.
The proposal has sparked debate online, with some calling it another sign of growing uncertainty for immigrants under current U.S. policies. One user questioned whether it was time to start moving financial assets like stock portfolios out of the U.S., fearing harsher financial regulations in the future.
“Given the everyday chaos and policy shifts, what’s stopping the government from taxing outgoing proceeds at 50%? No one fights for immigrants.”
Another commenter claimed that the ongoing interest in U.S. education despite these changes, “Even with job scarcity and visa uncertainty, students keep coming with big loans. For many, remittance taxes and exchange rates are secondary concerns.”
Some individuals are already taking action. One user noted they have shifted their cash and begun investing in property abroad, particularly in places like Dubai and Singapore, to avoid remittance and wealth taxes. “I’ve moved all my cash and am slowly relocating everything. Buying a bigger house for my family and planning to generate rental income over the next five years.”
If the bill becomes law, non-citizens sending money abroad—particularly to countries like India—will need to factor in the additional cost. While U.S. citizens may find ways to mitigate the fee, many immigrants, including long-term residents and students, could feel the financial pinch.
The final decision now lies with the Senate. If passed, the remittance tax could come into effect starting 2026, reshaping how millions of immigrants manage and transfer their money internationally.