President Donald Trump’s newly passed “One Big Beautiful Bill”—a sweeping 900-page legislation on government spending and immigration—has significant implications for Indians in the US and US-India relations. From remittance taxes to stricter immigration rules, here’s a breakdown of the key impacts and what it means for the future.

Key Takeaways: How the Bill Affects Indians

1. New 1% Tax on Remittances to India

Original Proposal: 5% tax on money transfers abroad.
Final Version: Reduced to 1% tax (effective January 1, 2026).
Who Pays?
- Non-citizens (Green Card holders, H-1B, H-2A visa holders, students).
- Exemptions: Bank transfers & card-based remittances (debit/credit).
Impact on India:
- India receives $129 billion/year in remittances, with 28% from the US.
- A 1% tax could cost Indian families ~$360 million annually.

2. Stricter Immigration & Border Controls

Crackdown on Illegal Immigration:
- $Billions allocated for border security & deportations.
- 18,000+ Indians identified as illegal entrants (US govt data).
- “Donkey Route” migrants (via Mexico) face higher risks.
Higher Visa & Application Fees:
- Asylum application: $100 (new fee).
- Work permits: $550 (up from $410).
- Humanitarian parole: $1,000 (new fee).
- Border crossing fines: $5,000 for illegal entry.

3. No Changes to Double Taxation Rules

NRIs & Green Card holders earning rental income in India will still avoid double taxation via tax credits.
No new taxes on foreign income, providing relief for Indian professionals in the US.

How This Bill Affects US-India Relations

1. Economic Ties & Remittance Dependence

India is the world’s largest remittance recipient—any tax on transfers could strain NRI-dependent families in Kerala, Punjab, Gujarat.
US tech firms & H-1B workers remain crucial, but higher visa fees may discourage Indian talent.

2. Immigration & Diplomatic Tensions

Deportation of illegal Indians may lead to repatriation challenges for India.
Human trafficking crackdown aligns with India’s pledge to dismantle illegal migration networks.

3. Long-Term Strategic Impact

Trump’s “America First” policy may slow Indian immigration but strengthen high-skilled worker focus.
Trade & investment ties likely unaffected, but political rhetoric could influence future negotiations.

What’s Next?

House approval expected soon—final vote pending.
Indian govt monitoring remittance tax impact on forex reserves.
NRI financial planning shifts—more use of exempt bank transfers.

Important Links-

Source	Description	Link
US Senate Bill Text	Official legislation database (search for latest immigration/budget bills)	https://www.congress.gov/
Pew Research Migration Data	Authoritative US immigration statistics including Indian diaspora trends	https://www.pewresearch.org/topic/immigration-migration/
RBI Remittance Reports	Reserve Bank of India’s official remittance inflow data	https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=56482
Johns Hopkins Research	Migration policy studies including Indian undocumented population	https://www.jhu.edu/research/migration-policy/
US CBP Border Stats	Customs and Border Protection enforcement statistics	https://www.cbp.gov/newsroom/stats