The One Big Beautiful Bill: A New Proposal Impacting Non-Citizen Remittances

On May 12, 2025, the U.S. House of Representatives introduced a bill titled The One Big Beautiful Bill, which proposes a 5% consumption tax on remittances sent overseas by non-citizens, including green card holders and holders of non-immigrant visas like H-1B and L-1. This bill, driven by the Republican party, is part of the Trump administration’s legislative priorities for 2025, with the goals of curbing illegal immigration funding and increasing government revenue.

A Major Shift for Non-Citizens and Their Families

This bill could potentially affect over 40 million non-citizens, particularly those from countries like India and Mexico, where remittances are a significant part of the economy. According to World Bank data, during the fiscal year 2024, India received approximately $32 billion in remittances, making it the largest recipient globally. If this proposal passes, the costs of sending remittances for Non-Resident Indians (NRIs) and other similar groups are expected to increase significantly, potentially straining family finances back home.

International Reactions and Concerns

The international community has expressed concern regarding the potential repercussions of this legislation. Mexican President Claudia Sheinbaum has openly criticized the tax as discriminatory, arguing that it may violate the United States-Mexico-Canada Agreement (USMCA). Indian media outlets, including India Today and Financial Express, have widely covered the issue, voicing concerns over the ramifications for the diaspora economy and the welfare of families relying on these funds.

The Legislative Path Ahead

Currently, the bill is still in the proposal stage and must pass both the House of Representatives and the Senate before being signed into law by the President. Reports from NBC News and The Washington Post suggest that the bill may face amendments or be shelved due to diplomatic pressures or domestic opposition.

Stay Informed

As this proposal advances through Congress, it is crucial for affected parties to stay informed. For updates and further developments, consider following major news outlets or monitoring the official U.S. Congress website at Congress.gov.

Disclaimer: The information in this article is based on reports from mainstream media, including NBC News, CBS News, Reuters, and The Economic Times. The final outcome of the bill remains to be determined by Congress.