Trump's 'Big, Beautiful Bill' Heads For Final Vote: How It Would Benefit Indians

Last Updated:July 03, 2025, 16:20 IST

Trump's 'One Big Beautiful Bill Act' awaits a final vote in the US House after a narrow passage in the Senate. The updated bill has reduced tax rate on remittances.

US President Donald Trump confident of 'Big Beautiful Bill' passing in House (Reuters Image)

US President Donald Trump’s ‘One Big Beautiful Bill Act‘ is nearing a final vote in the US House of Representatives after a turbulent and narrow passage in the Senate. The bill, which is expected to slash social welfare programs and include several tax cuts, may benefit Indians working in America.

The ‘Big Beautiful Bill’ is a landmark tax reform bill that is central to his 2025 economic agenda, and a party still wrestling with internal divisions, as some Republicans have also joined Democrats in voicing opposition to the legislation.

The bill aims to slash corporate taxes, reduce rates for individuals, and stimulate business investment – moves Trump claims will reignite the economy and restore American prosperity. Critics have expressed concern over its impact on national debt and healthcare.

How The Bill Would Impact Indians?

The bill has presented a significant advantage for Indians by diluting the tax rate of remittances. The US is India’s largest source of remittances, with a contribution of around 25%, bolstering India’s foreign exchange reserves.

The updated draft of the One Big Beautiful Bill Act has reduced the tax rate on remittances from the originally proposed 5% to 1% and will be applicable to remittances made via cash, money orders or cashier’s checks. The tax rate was brought down to 3.5% in the House version of the Bill.

This provision will apply to all residents who are not US citizens, including Green Card holders, those with temporary visas such as H-1B or H-2A, and foreign students. The reduction of the tax rate will benefit nearly 45 lakh Indians living in the United States.

“There is hereby imposed on any remittance transfer a tax equal to 1 per cent of the amount of such transfer…The tax imposed by this section with respect to any remittance transfer shall be paid by the sender with respect to such transfer," read the updated version of the bill.

What’s Next For The Bill

The bill awaits a final vote after the Republican-controlled House of Representatives cleared a procedural hurdle by a 219-213 vote, indicating that the previously resistant Republicans had agreed to move forward with the bill.

Of the five Republicans who initially voted ‘no’, four of them changed their votes to ‘yes’, delivering the votes necessary to pass the rule and advance the bill to set up a vote for final passage. This came after the bill narrowly cleared the Senate by a margin of 51-50 after US Vice President JD Vance cast the tiebreaker.

Trump had earlier expressed frustrations with dissenting Republicans. “Largest Tax Cuts in History and a Booming Economy vs. Biggest Tax Increase in History, and a Failed Economy. What are the Republicans waiting for??? What are you trying to prove???" he wrote. “MAGA IS NOT HAPPY, AND IT’S COSTING YOU VOTES!!!"

Aveek Banerjee

Aveek Banerjee is a Senior Sub Editor at News18. Based in Noida with a Master's in Global Studies, Aveek has more than three years of experience in digital media and news curation, specialising in international...Read More

Aveek Banerjee is a Senior Sub Editor at News18. Based in Noida with a Master's in Global Studies, Aveek has more than three years of experience in digital media and news curation, specialising in international...

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Washington D.C., United States of America (USA)

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News world Trump's 'Big, Beautiful Bill' Heads For Final Vote: How It Would Benefit Indians