In India, when the New Criminal Laws were named, they became a news. The reason? Because the names were formal Hindi script, while the people had become habitual of formal British English names. Recently, Elon Musk and US President Donald Trump’s policy clash made headlines, and “Big Beautiful Bill” in Trump’s voice was unmissable. While I personally assumed it was just his casual way of conveying about an upcoming policy, I never knew that the “One Big Beautiful Bill Act” (OBBBA) was the real, actual name of an upcoming law. To address my curiosity, I thought of scanning through various news reports to understand the Big Beautiful Bill and its impact on the United States, India and Indians in the US. Here is a compilation of all the information grabbed through news reports’ scan.
What is the Big Beautiful Bill?
US President Donald Trump’s One Big Beautiful Bill is labeled as a massive budget reconciliation package passed by US Congress in July 2025. It includes tax cuts, spending increases (on defense, immigration), and major cuts to social programs like Medicaid, SNAP (food stamps), and climate incentives. Given below are the key components of OBBBA:
- Tax amends: Makes the 2017 tax cuts permanent, creates new deductions (e.g., tips, overtime), raises SALT deduction limit.
- Cuts on social safety net: Medicaid reduced by largest ever 18%; SNAP food aid slashed by 20%; student aid and loans reshaped.
- Defense & immigration expenses: Billions for border wall, ICE, deportation brings a big beautiful boost to military & missile defense systems.
- Energy policy: Repeals or phases out clean-energy tax credits (EVs, wind, solar), encourages fossil fuel projects.
- Deficit impact: Adds almost $2.4 – 3.3 trillion to the US deficit over a decade; millions stand to lose health insurance .
Why all included in one Bill?
While Big Beautiful Bill may sound a casual attempt, some experts call it a clever move. Because of Senate rules, Republicans used reconciliation, which allows passing budget-related bills with a simple majority and bypass the 60‑vote filibuster. This strategy lets the Trump Administration combine controversial tax, spending, and policy changes into a single legislative carrier.
OBBBA Impact on India and the Indian Diaspora
- Tax benefits for Indian workers in America
H‑1B and visa holders (e.g., many Indian IT professionals) shall seemingly continue enjoying lower tax brackets, larger standard deductions, child tax credits, and 20% pass‑through business income deductions.
- Remittance tax
A 3.5–5% excise tax on money transfers by non‑citizens (e.g., H‑1B, green card holders) to foreign countries could add ~US $1.6 billion tax burden on ~$32 billion remitted annually by Indians. This may raise the costs by about US $35–50 per US $1,000 sent.
- Healthcare cuts affecting immigrant families
Medicaid eligibility will tighten because of work requirements and redrafted rules. This is more likely to impact low‑income immigrant families, seniors sponsored by children, etc.
- College funding consequences
Cuts to federal student aid, especially need‑based grants, will affect international students, including Indian students. Fewer on‑campus jobs, lower subsidies, and rising debt burden is expected.
- Economic ripple effects
A higher U.S. deficit could lead to rising interest rates, which would strengthen the US dollar. This also means getting more expensive for Indians to receive or borrow in dollars.
Bottom line for Indian community
| Pros | Cons |
| Permanent tax cuts means more take-home pay for Indian professionals | Remittance tax: costs up 3.5–5% |
| Business income deductions help small Indian-run ventures | Healthcare cuts may reduce coverage for low-income immigrant families |
| Less student aid means higher college costs | |
| Higher interest rates mean stronger dollar hurts remittances |
What’s next after Big Beautiful Bill?
The US President Trump has announced a big celebration for signing the Big Beautiful Bill on July 4, 2025 with pen in hand. As per experts, the legal challenges are likely to occur, especially around remittance taxes and immigrant healthcare.Speaking of the impact on Indians, the Indian diaspora needs to prepare for costlier remittances, reassess college plans, and explore alternative health insurance.
Final thought
The Big Beautiful Bill is a sweeping restructuration of the US fiscal and social policy. For Indians in America, it’s a mix of continued tax relief and growing pressures, from remittance taxes to healthcare cuts. Families sending money home and students should weigh the changes carefully. As it may, the cue for budgetary adjustments is much clear for Indians living in the US.
