The US might soon start taxing NRIs just for supporting their families back home. A new bill backed by President Donald Trump is going to impose a 5% tax on remittances sent by non-citizens, including those on H-1B, F-1 visas, and even green cards.
The bill, being called the “One Big Beautiful Bill,” narrowly passed the House Budget Committee with a 17-16 majority last week. It is now heading for a full House debate, and if passed, Trump could sign it by July 4th.
This is a huge blow for NRIs. In 2023-24, Indians in the US sent a massive $32 billion back home. A 5% tax means the community would have to pay more than $1.6 billion a year.
As expected from the new US president, this is another targeted attack on immigrants. Even the legal, high-skilled professionals and students who pay taxes and boost the economy will get no exemption from this added cost.
If it is passed, it is believed the tax will be imposed only from January 1, 2026. Thus, the panic could see a rush among the Indians to send as much cash back home before the end of the year.
The “One Big Beautiful Bill” is just a sinister name for this nightmare for the Indian diaspora. It is the latest step from Trump’s administration to make immigrants’ lives difficult in the US.
