Trump's 'Big, Beautiful Bill': Know how will it impact Indians as bill awaits final vote

As US President Donald Trump's tax and spending bill awaits final vote in the House on Thursday (July 3), it can have a significant impact on Indians. Trump's 'Big and Beautiful Bill' could define his second term in the White House and is expected to cause $3 trillion debt for the US.

On Wednesday, Trump defended his bill after it barely passed in the Senate. In a social media post, the US president stated that the tax and spending bill will bring “growth” to the US, despite an estimated $3.3 trillion increase in the national debt through 2034.

On Tuesday, the senators voted 51-50 to pass the bill after Vice President JD Vance cast the tie-breaking vote, as three Republicans voted against the bill.

How the bill impacts India

In the 940-page proposal, a significant revision has been made on the dilution of the provision on tax remittances to other countries, including India. There will be a massive relief for thousands of non-resident Indians (NRIs) and Indian professionals working in the US, who send money to their families back home.

The Indian diaspora in the US is notably the second-largest migrant community in America.

According to the updated draft of the bill released on June 27, the tax rate on remittances was reduced to one per cent, which is down from the five percent proposed originally.

Earlier in the House version, the tax rate was brought down to 3.5 per cent, but now, it has been slashed to 1 per cent.

"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," the updated draft of the bill states.

This rule will be applicable to all US residents who aren't US citizens, and also includes Green Card holders, people on temporary visas such as H-1B or H-2A and foreign students.

It is expected to benefit nearly 45 lakh Indians living in the US, including nearly 32 lakh people of Indian origin.

Earlier today, Trump urged Republicans to vote for it, asking, "What are the Republicans waiting for??? What are you trying to prove?"

"Largest Tax Cuts in History and a Booming Economy vs. Biggest Tax Increase in History, and a Failed Economy. MAGA IS NOT HAPPY, AND IT’S COSTING YOU VOTES!!!," he stated in a post on Truth Social.

"FOR REPUBLICANS, THIS SHOULD BE AN EASY YES VOTE. RIDICULOUS!!!," Trump added.