Trump Signs ‘One Big Beautiful Bill Act’: What It Means For Indians And High-Income Americans

Last Updated:July 06, 2025, 13:29 IST

The bill, passed by both chambers of Congress, includes several measures that will impact Indian families and workers abroad

Donald Trump signs ‘Big Beautiful Bill’ into law (Reuters Image)

US President Donald Trump signed into law the “One Big Beautiful Bill Act" on Friday during a Fourth of July picnic at the White House, bringing sweeping changes to taxes, remittances, and federal spending.

The bill, passed by both chambers of Congress, includes several measures that will impact Indian families and workers abroad, as well as raise fresh questions about tax breaks for high-income Americans.

“This is the most patriotic bill ever passed," Trump said during the signing. “We are putting American families, American jobs, and American values first."

Impact On Indians: Remittance Tax

One of the bill’s key provisions is a 1 per cent levy on international money transfers made by non-US citizens, including green card holders and workers on temporary visas.

The tax applies to remittances sent using cash, money orders, or cashier’s cheques. India, the world’s largest remittance recipient, could be significantly affected.

According to the Reserve Bank of India, Indian nationals received $32.9 billion in remittances from the US in 2023-24, accounting for nearly 28 per cent of total inflows.

The new levy, even at a reduced rate of 1 per cent — down from an earlier proposed 5 per cent— may strain households in states like Kerala, Uttar Pradesh, and Bihar, where remittances support education, healthcare, and housing.

Tax Cuts For The Wealthy

The bill also extends the 2017 Trump tax cuts, including larger standardised deductions — a move that economists say disproportionately benefits wealthy individuals and large corporations.

At the same time, cuts to Medicaid funding are likely to affect low-income and disabled Americans.

The law allows up to $10,000 in interest deductions on loans for buying new American-made vehicles. However, federal tax credits for electric vehicles — which offered up to $7,500 in incentives — will now end in September, four years ahead of schedule.

Meanwhile, clean energy tax credits from the Biden era will be phased out entirely by 2028.

Defence And Immigration Spending

The bill also boosts military and immigration enforcement budgets, with $150 billion allocated for shipbuilding and missile defence, including Trump’s “Golden Dome" project.

Another $100 billion has been directed to US Immigration and Customs Enforcement (ICE) to ramp up immigration crackdowns.

One campaign promise that did make it through — a tax exemption on service industry tips — was included in the final law.

The Congressional Budget Office estimates that the new law will add $3.3 trillion to the federal deficit over the next decade.

Notably, for many Indian families reliant on US remittances, even a modest 1 per cent tax could add up. At the same time, the law renews Trump-era tax cuts for the rich, intensifying debates over fiscal priorities and economic equity.

Location :

United States of America (USA)

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News world Trump Signs ‘One Big Beautiful Bill Act’: What It Means For Indians And High-Income Americans