Trump’s ‘One Big Beautiful Bill’ Passes: What It Means for Indians on Remittances, Immigration, and Legal Stay
After US Congress cleared former President Donald Trump’s massive government spending package—officially titled the One Big Beautiful Bill—its ripple effects are being felt across the globe. For India, the most immediate impacts lie in remittances, immigration, and visa-related costs for NRIs and Indian-origin individuals living in the US.
The 900-page legislation touches nearly every aspect of public spending and immigration enforcement, and here’s how it affects Indians.
Remittances: 1% Tax from 2026
A key feature of the bill is the new 1% tax on foreign remittances, down from the initially proposed 5%. The tax takes effect from January 1, 2026, and will apply to money sent from the US to other countries.
“US bank and card-based remittances remain exempt, but high-value or frequent transfers may need re-evaluation,” says Ram Naik, co-founder of The Guardians Real Estate Advisory.
This will directly affect India’s 4.5 million-strong diaspora in the US—many of whom send substantial amounts back home to support families or invest.
No Change in Foreign Income Tax Rules
Despite wide-ranging reforms, the bill does not alter the tax treatment of foreign-source rental income for US residents, including NRIs with green cards or US citizenship.
“Such income continues to be taxed under current US law, with tax paid in India eligible for credit in the US,” clarifies Sandeep Bhalla, Partner, Dhruva Advisors.
This means Indian NRIs won’t face new tax burdens on rental or investment income earned in India, preserving protections against double taxation.
Crackdown on Undocumented Immigrants
One of the bill’s most aggressive elements is a massive boost to immigration enforcement, in line with Trump’s promise of the “largest mass deportation operation in American history.”
Undocumented Indian migrants, especially those who enter via Latin America using the perilous “donkey route,” are firmly in the spotlight. US officials have identified around 18,000 Indian nationals living illegally.
India has said it will assist in returning such individuals and will also work to dismantle the human trafficking networks that facilitate illegal entry.
How big is the undocumented Indian population in the US?
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US govt estimate: 2.2 lakh
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Pew Research Center estimate: 7 lakh
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Share of all undocumented immigrants: 3rd largest group after Mexico and El Salvador
A 2025 study from Johns Hopkins notes that while Indians made up just 0.8% of undocumented migrants in 1990, their share rose to 3.9% in 2015, before declining to 2% by 2022.
Soaring Legal Fees for Immigration Applications
The bill also raises the financial burden on legal immigrants, introducing or increasing fees for various immigration and humanitarian protections.
| Application Type | New Fee Amount |
|---|---|
| Asylum application | $100 |
| Employment authorisation | $550 |
| Temporary Protected Status | $500 |
| Humanitarian parole | $1,000 |
| Illegal border crossing fine | $5,000 |
Notably, no fee waivers will be available for low-income applicants. Cuts to Medicaid and other welfare programmes will further strain resources for immigrant and vulnerable communities.
Looking Ahead
While these are the most immediate and tangible consequences, experts say the medium- and long-term effects on Indian families, student migrants, and the broader India-US economic relationship will unfold over time.
Trump’s ‘One Big Beautiful Bill’ may be domestically focused, but its reach—and its risks—go far beyond American borders.
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