The Big Beautiful Bill: Latest Developments, Public Sentiment, and Impact on Non-Resident Indians (NRIs)

Introduction

The One Big Beautiful Bill Act (OBBBA), championed by U.S. President Donald Trump, has emerged as a pivotal piece of legislation in 2025, sparking widespread debate across the United States and beyond. This sweeping 1,116-page tax and spending bill, which passed the U.S. House of Representatives in May 2025, is now under intense scrutiny in the Senate with a self-imposed deadline of July 4, 2025, for passage. The bill promises significant changes to taxes, healthcare, Social Security, and international financial policies, including a controversial remittance tax affecting Non-Resident Indians (NRIs). This article explores the latest news, recent comments, and the bill’s specific implications for the Indian diaspora, incorporating key insights from recent reports and public sentiment.

Latest News on The Big Beautiful Bill

The One Big Beautiful Bill Act has progressed significantly since its introduction. The U.S. House passed the bill on May 22, 2025, with provisions extending certain aspects of the 2017 Tax Cuts and Jobs Act and introducing new measures like Section 899, which targets foreign companies in “discriminatory” tax jurisdictions. The Senate released a revised draft on June 27, 2025, scaling back some of the more contentious elements, such as additional tax cuts and the remittance tax rate, to address public and political concerns.

Key updates include:

• Remittance Tax Reduction: Initially proposing a 5% tax on international money transfers by non-U.S. citizens, the Senate draft lowered this to 1% after significant pushback from immigrant communities, particularly NRIs. This tax applies to non-exempt transfers made after December 31, 2025, with exemptions for transfers from U.S. bank accounts and U.S.-issued cards.
• Healthcare and Social Security Changes: The bill proposes increased Medicaid re-enrollment requirements (every six months instead of annually) and a temporary $4,000 standard deduction increase for seniors aged 65 and older from 2025 to 2028.
• Corporate and Foreign Investment Impacts: Section 899 could raise taxes by up to 20% on foreign companies in countries deemed to impose “unfair” taxes, potentially affecting foreign investment and U.S. job markets.

The Senate’s revisions aim to balance economic growth with fiscal responsibility, but the bill’s passage remains uncertain, with ongoing negotiations and a tight deadline looming.

Recent Comments and Public Sentiment

The Big Beautiful Bill has elicited polarized reactions, as reflected in posts on X and media commentary:

• Supportive Voices: Republican lawmakers like Rep. Tom Cole (R-OK) have praised the bill, emphasizing “promises made, promises kept” for their constituents. On X, users like @ElectionWiz noted that key GOP holdouts, including Senators Hawley and Collins, are leaning toward supporting the bill, suggesting growing momentum.
• Opposition and Concerns: Critics, including Democratic Senator Elizabeth Warren (@SenWarren), have labeled the bill “very unpopular,” arguing it prioritizes tax breaks for billionaires while cutting healthcare and food assistance for millions. A post by @factpostnews cited a poll showing 64% unfavorable views and 72% concern over potential increases in uninsured individuals due to healthcare cuts.
• Uncertainty on Passage: Some X users, such as @rovercrc, claim the bill is “unlikely to pass in its current form or anytime soon,” highlighting its $20 trillion debt increase over a decade and delayed reforms like Medicaid work requirements until 2029.

These contrasting sentiments underscore the bill’s divisive nature, with supporters viewing it as a bold economic strategy and opponents warning of its adverse effects on vulnerable populations.

Impact on Non-Resident Indians (NRIs)

The One Big Beautiful Bill Act has significant implications for the approximately 2.9 million Indians living in the U.S., the second-largest foreign-born population as of 2023. The remittance tax has been a focal point for NRIs, given India’s status as the world’s top recipient of diaspora remittances, receiving $135.46 billion in FY24, with the U.S. contributing roughly $32 billion.

Key Impacts:

1. Reduced Remittance Tax: The original 5% tax proposal sparked alarm among NRIs, with estimates suggesting it could cost the Indian diaspora $1.6 billion annually and weaken the Indian rupee by Rs 1–1.5 per U.S. dollar. The Senate’s reduction to 1%, coupled with exemptions for digital transfers via U.S. bank accounts and cards, mitigates much of this impact. Most NRIs, including H-1B visa holders, L-1 visa holders, and green card holders, are likely to avoid the tax by using exempt channels, offering significant financial relief.
2. Financial Planning and Stability: The revised draft provides clearer guidelines, enabling NRIs to plan their finances more effectively. As noted by The Economic Times, the exemptions for bank and card transfers mean many NRIs may face no tax at all, easing concerns for professionals and students sending money home for family support or investments.
3. Economic and Currency Implications: The lower tax rate reduces the potential strain on India’s foreign reserves and the rupee’s value. However, NRIs are advised to transfer U.S.-accumulated funds before January 1, 2026, when the tax takes effect, to avoid any residual impact.

Community Response

The Indian diaspora has expressed relief over the tax reduction. India Today and Times of India reported widespread approval among Indian professionals, with many appreciating the Senate’s responsiveness to their concerns. However, some NRIs remain cautious, monitoring the bill’s final form as it could still affect cash-based transfers or future policy adjustments.

Broader Economic and Global Context

Beyond NRIs, the bill’s provisions, such as Section 899, could deter foreign investment by imposing higher taxes on companies from countries like Canada, which introduced a digital services tax in 2024. Critics, including the Global Business Alliance, estimate a potential loss of 700,000 U.S. jobs and a $100 billion annual GDP reduction. Additionally, loopholes in the bill may continue to incentivize offshoring by pharmaceutical and tech companies, potentially undermining its goal of boosting domestic manufacturing.

Conclusion

The One Big Beautiful Bill Act remains a contentious and transformative piece of legislation as it nears a critical Senate vote. Its reduced remittance tax offers significant relief for NRIs, ensuring minimal disruption to the $32 billion in annual remittances to India. However, the bill’s broader implications—ranging from healthcare cuts to corporate tax changes—continue to fuel debate. As lawmakers finalize negotiations, the Indian diaspora and global stakeholders will closely watch how this “big, beautiful” legislation shapes economic and social landscapes in the U.S. and beyond.