What the US 'One Big, Beautiful Bill Act' means for NRIs and visa holders
Public Lokpal
May 26, 2025
What the US 'One Big, Beautiful Bill Act' means for NRIs and visa holders
Washington DC : The US House of Representatives have passed the ‘One Big, Beautiful Bill Act’. Touted as a "once-in-a-generation opportunity," the bill pushes forward US President Donald Trump’s taxation and spending priorities.
The legislation now moves to the Senate, where Republicans are expected to introduce their own changes.
On X (formerly Twitter), Trump called it the “most significant piece of Legislation that will ever be signed in the History of our Country!”
He urged the Senate to pass it quickly, citing no time to waste.
What is the ‘One Big, Beautiful Bill Act’?
The bill aims to:
Reform taxes and cut government spending
Introduce a 3.5% excise tax on remittances by non-citizens
Support stricter immigration enforcement
The 3.5% remittance tax, down from an earlier proposal of 5%, is set to take effect from January 1, 2026, according to the final version passed by the House.
Key provisions of the House-passed Bill
Trump-era tax cuts extended:
The bill makes permanent the tax cuts introduced under the 2017 Tax Cuts and Jobs Act (TCJA), which had increased standard deductions and lowered tax brackets.
Higher SALT deduction cap:
The cap on state and local tax (SALT) deductions rises from $10,000 to $40,000 annually.
Funding for immigration enforcement:
$45 billion to Immigration and Customs Enforcement (ICE) for detention facilities
$14 billion for deportation efforts
Funds to hire 10,000 new ICE agents by 2029
Rollback of Biden-era green incentives:
The bill phases out tax benefits offered to businesses for electric vehicles and clean energy under former president Joe Biden.
Cuts to social programs:
Significant reductions proposed in Medicaid, Obamacare, and student loan relief programs.
What it means for Indian visa holders
The bill carries major implications for the Indian diaspora in the US. According to the Migration Policy Institute, over 2.9 million Indian immigrants lived in the US in 2023.
For high-earning Indian professionals on H-1B and other work visas, the extension of Trump-era tax cuts will preserve lower tax brackets and higher standard deductions. Dual-income families will continue benefiting from increased child tax credits.
But the 3.5% remittance tax will make sending money abroad, including to India, more expensive.
This tax targets non-US citizens, including non-immigrant visa holders.
Why this matters to India
The US is a major remittance source for India. According to the RBI’s March remittance survey, the US accounted for 28% of the $118.7 billion India received in 2023-24 — roughly $32 billion.
A new tax on these outflows could discourage formal transfers and strain financial support to families in India.
CNBC
