A new bill introduced in the US by the Trump-led team has raised concerns among Indian workers living there. The bill doesn’t talk about canceling visas or deporting people, but instead says a 5% tax on money sent to other countries.This means if an Indian professional in the US sends $100 to India, they will have to pay $5 as tax. So, they might either send less money to their families or spend more to send the same amount.The bill, called “The One Big Beautiful Bill,” was introduced on May 12 in the US House of Representatives. It targets money transfers by non-US citizens, including Green Card holders and H-1B visa workers.

Experts say this could affect Indian families and weaken the Indian rupee. Reports suggest that the bill could impact around 40 million people living in the US.This plan could affect poor neighbouring countries of the US and important allies like India and Mexico.According to 2024 World Bank data, India received the highest amount of remittances globally,  $129 billion. About 28% of this money came from the US. That means a large number of Indians in the US send money home regularly.

If the proposed law is passed, sending money to India will become costlier for workers living in the US on visas. For example, if someone sends $100 home, they would have to pay an extra $5 as tax.
Experts from the Global Trade Research Initiative (GTRI) say this move could cause India to lose $12–18 billion every year. This would also reduce the amount of US dollars available in India, which could slightly weaken the Indian rupee.

India currently receives 14.3% of all global remittances, the highest for any country in recent times. So, any drop in these money transfers will have a big impact on Indian households and the economy. If the US passes the new bill to tax remittances, the Indian rupee could fall by ₹1–1.5 against the dollar, and the RBI may have to step in more often to control the damage.

Many Indian professionals living in the US, including those with Green Cards and H-1B visas, are concerned.The "One Big Beautiful Bill" suggests a 5% tax on money sent abroad by non-US citizens, which would make it more costly for Indians to send money back home.Remittances are very important for many Indian families, especially in states like Kerala, Uttar Pradesh, and Bihar. The money helps them pay for things like education, healthcare, food, and housing.

Ajay Srivastava from GTRI warned that if these money transfers drop, families will spend less, which could hurt the Indian economy further, especially during this time of inflation and global uncertainty. He also said that taxing this money flow could reduce income in poor countries, slow down global development, and increase economic inequality and instability.This issue is important because India has asked the WTO to help make it cheaper to send money across borders.

According to chartered accountant Shree Ram Raut, the proposed 5% tax on remittances could cost India around $1.6 billion every year. He estimated this based on the fact that 45 lakh Indians in the US sent home $32 billion in 2023-24.The bill has already received criticism from some experts and groups.