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Home » How Trump’s ‘Big Beautiful Bill’ affects Indians

How Trump’s ‘Big Beautiful Bill’ affects Indians

Ananya Pattnaik by Ananya Pattnaik
July 4, 2025
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With the US Congress passing President Donald Trump’s massive “One Big Beautiful Bill,” its ripple effects are already being felt across the world — including in India.


The nearly 900-page legislation includes sweeping changes in immigration enforcement, taxation, and remittance policies, many of which impact the Indian diaspora directly. Here’s a breakdown of how the new bill affects Indians:

1. Tax on Remittances to India

One of the most immediate changes is the imposition of a 1% tax on remittances sent from the US to foreign countries, including India. While this is a significant reduction from the originally proposed 5%, it still impacts the nearly 4.5 million Indians and Indian-origin individuals in the US — many of whom regularly send money to support families back home.

  • Effective from: January 1, 2026

  • Exceptions: Remittances via US banks and card-based systems remain tax-free.

Financial experts suggest high-volume or frequent remitters will need to reassess their transfer strategies in light of the new policy.

2. No Change in Tax on Rental Income

Despite the sweeping nature of the bill, it does not alter the existing tax rules on foreign-source rental income earned by US-based NRIs. Income earned from Indian properties will still be taxed in India, and US residents can claim tax credits to avoid double taxation.

3. Crackdown on Illegal Immigration

The bill dramatically escalates the US’s immigration enforcement:

  • Mass deportation funds: Billions allocated for detention, deportation, and border control.

  • 100,000 detention beds, 10,000 ICE agents, and $1 billion for border ops.

Indians who entered illegally — especially those using the “donkey route” — are now under closer scrutiny. US authorities have identified 18,000 Indian nationals for deportation. The Indian government has agreed to take them back and cooperate in dismantling human trafficking networks.

The bill also imposes a $5,000 fine for individuals caught crossing borders unlawfully.

4. Increased Fees for Legal Immigration

Legal immigrants, asylum seekers, and work visa holders face a steep hike in administrative fees:

  • Asylum application: $100

  • Employment Authorization Document (EAD): $550

  • Temporary Protected Status: $500

  • Humanitarian parole: $1,000

  • No waivers for low-income applicants

The policy changes will particularly burden low-income immigrants and those navigating humanitarian or temporary stays.

5. Cuts to Welfare Programmes

In addition to immigration policies, the bill enacts cuts to Medicaid and social safety nets, further affecting immigrant and minority communities, including legal Indian residents.

While the reduced remittance tax offers some relief, Trump’s legislation signals a hardline stance on immigration and tightens rules on legal and undocumented migrants alike. NRIs and aspiring immigrants must now prepare for higher costs, stricter controls, and complex legal landscapes as they plan for work, investment, or family relocation in the US. Long-term consequences for India’s economy and global mobility remain to be seen.

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