On July 3, 2025, U.S. President Donald Trump secured a significant victory as Congress passed his central tax and spending plan, known as the “One Big Beautiful Bill.” The bill makes many big changes, but one rule stands out for Indian students and professionals in the U.S.:
A new 1% tax will now apply to all money sent out of the U.S., including transfers to India.
What this means:
- If you’re sending money home to support family or repay education loans, you’ll now pay 1% extra.
- This will affect many Indian students, H-1B workers, and Green Card holders who regularly send money back to their families in India.
- Even a ₹5 lakh transfer (⁓ $6,000) would now incur an additional ₹5,000 in tax.
Other Key Impacts for Indian Students
The bill cuts funding for clean energy and healthcare, two areas where many international students conduct research, internships, or secure employment.
- Tougher Immigration Environment
The U.S. will allocate more funds for deportations and border control. While student visas (F1) aren’t directly affected yet, this shows the U.S. may take a harsher view on immigration in the coming months.
Quick Summary of the Bill
- Spends $4.5 trillion (₹375 lakh crore) on tax cuts, military, and deportation programs.
- Cuts healthcare support, risking insurance for 17 million Americans.
- Ends support for clean energy and electric vehicles.
- Caused big debates in U.S. politics; some called it a “disgusting abomination.”
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Source: The Hindu