Thu Jul 03 09:47:58 UTC 2025: **Summary:**

President Trump’s tax-and-spending bill faces a final vote in the House of Representatives after a difficult passage, with some Republicans joining Democrats in opposition. The bill slashes social welfare programs and increases the national debt by $3 trillion. However, revisions to the bill offer significant relief to Indian nationals working in the U.S. by reducing the tax rate on remittances sent to India to 1%, down from the originally proposed 5%. The new rules will apply to all US residents who are not US citizens, and exempts remittances made via debit card or credit card issued in the United States.

**News Article:**

**Trump’s Tax Bill Faces Final Hurdle, Offers Relief to Indian Remittances**

Washington D.C. – President Donald Trump’s sweeping tax-and-spending bill is headed for a final vote in the House of Representatives amid internal opposition and concerns about its impact on the national debt. The legislation, which aims to reshape the U.S. economic landscape, has faced a rocky path through Congress, with critics raising alarms about its potential to slash social welfare programs and add $3 trillion to the national debt.

Despite the controversy, a key revision within the bill offers a significant win for the nearly 4.5 million Indian nationals residing in the U.S. The amended legislation reduces the tax on remittances sent to India to 1%, a dramatic drop from the initially proposed 5%. This change is expected to ease the financial burden on non-resident Indians (NRIs) and Indian professionals who regularly send money back home.

The lowered tax rate applies to all U.S. residents who are not U.S. citizens, including Green Card holders, those on temporary visas like H-1B or H-2A, and foreign students. Remittances made through cash, money orders, or cashier’s checks are subject to the tax.

However, the updated draft of the bill provides exemptions for remittances made from accounts held in financial institutions and those funded with debit or credit cards issued in the United States.

The bill’s fate now rests in the hands of the House, where a final vote will determine whether Trump’s signature legislation becomes law.

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