Former U.S. President Donald Trump has introduced a controversial new proposal called the One Big Beautiful Bill Act, which seeks to impose a 5% tax on all money sent from the United States to other countries. If passed, this remittance tax would apply to non-U.S. citizens, including H-1B and F-1 visa holders and green card holders, but not U.S. citizens. There is no exemption threshold, meaning all international transfers—regardless of amount—would be taxed.
The bill passed the U.S. House Budget Committee by a narrow 17-16 vote and is now headed to the full House for consideration. Analysts warn the bill could significantly impact millions of immigrants, particularly Indians, who sent $32 billion in remittances to India in 2023-24. If enacted, the proposed tax could cost them $1.6 billion annually and potentially reduce remittance flows, affecting India’s foreign reserves and investment.
The Trump administration argues the bill would curb money outflows and boost domestic revenue, while also serving as a measure to discourage illegal immigration. Critics, including Democrats and some Republicans, view it as politically motivated and harmful to immigrant communities.
