Big Beautiful Bill Passed By US House Of Reps
The bill lowers tax revenues by an estimated $4.5 trillion over the next decade while cutting federal spending by $1.1 trillion: Reports
CHENNAI: The US House of Representatives have passed the ‘Big Beautiful Bill’, which brings in significant tax cuts and spending reductions, along with a tax on remittances and caps on student loans that affect the Indian population in the country.
The bill lowers tax revenues by an estimated $4.5 trillion over the next decade while cutting federal spending by $1.1 trillion.
It mandates a one per cent levy on certain outbound money transfers. The tax will apply to transfers made via cash, money orders, or cashier’s checks, but transfers made from financial institutions or funded through US-issued debit/credit cards will be exempt. Originally proposed as a 5 per cent tax on non-commercial overseas money transfers, the rate was cut to 3.5 per cent and then to 1 per cent.
Of the $129 billion remittances received by India in 2023–24, 28 per cent came from the US alone. At 1 per cent, the impact on remittances will be limited for Indians and Indian-origin people in the US.
Further, the bill has cut the financial aid to students, paused student-debt relief measures and placed caps on student loans. The Indian students studying in US universities will see their expenses going up.
The bill, which raises the federal borrowing limit by $4–5 trillion, will increase US debt levels. By halting clean‑energy tax credits, the environmental efforts across the globe will take a hit.
