Key Takeaways
• The One Big Beautiful Bill signed July 4, 2025, changes taxes, healthcare, immigration, especially for Indians in the U.S.
• Green card holders face five-year Medicaid wait; visa fees and remittance taxes increase immediately after July 4, 2025.
• Enforcement funding rises to $100 billion by 2029; asylum seekers pay new $100 and $575 fees.
On July 4, 2025, President Trump signed the “One Big Beautiful Bill” (H.R. 1) into law, bringing sweeping changes to U.S. tax, healthcare, and immigration policy. This update explains what has changed, who is affected—especially Indians in the U.S.—the effective dates, what actions are required, and the real-life implications for those with pending or future applications.
Summary of What Changed
The “One Big Beautiful Bill” is now law. It changes how taxes work, who can get government healthcare like Medicaid, and how immigration rules are enforced. The law also introduces new fees for visas, taxes on money sent abroad (remittances), and stricter rules for getting and keeping public benefits. While the bill was promoted as a win for American workers and security, it brings new challenges for immigrants, especially the over two million Indians in the U.S.
Who Is Affected
- Indian students, professionals, and families on visas like H-1B, F-1, and J-1
- Green card holders (lawful permanent residents)
- Refugees, asylees, and other humanitarian immigrants
- Elderly and disabled immigrants who relied on Medicare or Medicaid
- Families sending money to India
- Employers of Indian talent in tech, healthcare, and academia
Effective Dates
- Tax changes: Retroactive to January 1, 2025
- Medicaid and healthcare changes: Phased in, with some rules starting immediately and others (like work requirements) by December 31, 2026
- Visa and asylum fees: Effective for all new applications after July 4, 2025
- Remittance tax: Starts at 1% immediately, rising to 3.5% in the coming years
- Enforcement funding: Increases each year through 2029
Required Actions
- Green card holders: Prepare for a five-year wait before Medicaid eligibility; check state Medicaid rules for new work requirements and redetermination schedules
- Visa holders (H-1B, F-1, J-1): Budget for higher visa fees; review health insurance options since Medicaid and premium tax credits are now out of reach
- Asylum seekers: Plan for new application and work permit fees
- Anyone sending money to India: Factor in the new remittance tax and consider how it affects family budgets
- Employers: Stay alert for IRS and Treasury guidance on payroll and tax changes; update HR and legal teams on new visa and healthcare rules
- Families and students: Monitor updates from U.S. Citizenship and Immigration Services (USCIS) and state Medicaid agencies for the latest requirements
Detailed Changes and Implications
Medicaid and Healthcare Access
Medicaid Eligibility and Waiting Periods
– Green card holders now face a five-year waiting period before they can get Medicaid. This is a big change from before, when many could qualify sooner.
– Refugees, asylees, and most humanitarian immigrants are now excluded from Medicaid and CHIP unless they become citizens or get green cards.
– Retroactive Medicaid coverage is now limited to one month (down from three), making it harder to get help for sudden medical emergencies.
Work Requirements and Redeterminations
– By the end of 2026, states must add work requirements for many Medicaid enrollees. Only a few groups are exempt, and these rules will last at least until 2028.
– States must check Medicaid eligibility every six months for people in expansion groups, which could lead to more people losing coverage if they miss paperwork or deadlines.
Federal Funding Cuts
– The law cuts over $1 trillion from federal Medicaid funding. States will have to make up the difference, likely by reducing coverage or raising costs for enrollees.
Premium Tax Credits and Medicare
– Only citizens, green card holders, some Cuban and Haitian immigrants, and citizens of Compact of Free Association nations can get help paying for health insurance. Most other lawful residents, including those on H-1B or student visas, are excluded.
– Medicare is now limited to citizens and green card holders, cutting off many elderly or disabled immigrants who previously qualified.
What This Means for Indians in the U.S.
– Green card holders must wait longer for Medicaid and face more checks to keep coverage.
– H-1B, F-1, and J-1 visa holders cannot get Medicaid, CHIP, or premium tax credits, so they must rely on employer insurance or expensive private plans.
– Elderly and disabled immigrants who are not citizens or green card holders may lose access to Medicare and Medicaid, increasing health risks and costs.
Immigration and Visa Policy Changes
Visa and Asylum Fees
– A new $250 “Visa Integrity Fee” now applies to H-1B, F, and J visa applicants. This adds to the already high cost of applying for or renewing visas.
– Asylum seekers must now pay $100 for applications and $575 for work permits, making it harder for those fleeing danger to get protection and support.
Remittance Tax
– There is now a 1% tax on money sent abroad, which will rise to 3.5% over time. Indians in the U.S. send over $25 billion to India each year. This tax could take away nearly $1.6 billion from families in India who rely on this money for food, education, and healthcare.
Enforcement and Deportation
– The bill increases funding for Immigration and Customs Enforcement (ICE) from $10 billion to over $100 billion by 2029.
– There have already been reports of dozens of Indian nationals deported by military planes, and over 18,000 Indians flagged in removal operations.
– The law also encourages the detention of families for misdemeanor entry violations and spends $300 million on background checks for sponsors of unaccompanied children.
Practical Impact
– Visa holders face higher costs and more barriers to renewing or changing status. This may discourage talented Indians from staying in or coming to the U.S.
– Families sending money home will have less to send, and relatives in India may struggle to pay for basic needs.
– Increased enforcement has created a climate of fear. Some Indian students and professionals are avoiding public places or quitting part-time jobs to avoid attention from immigration authorities.
– Family unity is at risk, with more families facing detention or separation due to stricter enforcement and background checks.
Tax and Financial Mobility
Tax Rates and Deductions
– The bill makes permanent the individual tax rates and standard deduction amounts from the 2017 Tax Cuts and Jobs Act. The standard deduction increases for 2025 and will adjust for inflation.
– Federal income taxes are now eliminated on tipped wages and overtime pay.
– A temporary $6,000 annual deduction is available for taxpayers aged 65 or older through 2028.
Trump Accounts and Child Tax Credit
– A new tax-advantaged savings account, called the “Trump Account,” is created for every American newborn. It is not yet clear if non-citizen children are eligible.
– The Child Tax Credit is permanently increased for over 40 million families, but non-citizen families are mostly excluded.
Remittance Taxation
– The new remittance tax is a direct financial hit to Indian families in the U.S., many of whom send money home for education, healthcare, and daily living expenses.
Implications for Indians in the U.S.
– Take-home pay may increase for some, but the benefits are limited for non-citizens who are excluded from key credits and deductions.
– Cost of living rises due to higher visa fees, remittance taxes, and healthcare costs.
– Upward mobility is harder to achieve, especially for those who came to the U.S. for better opportunities in tech, healthcare, or education.
Implications for Pending Applications
If you have a pending visa, green card, or Medicaid application, here’s what you need to know:
- Visa and immigration applications: New fees apply to all applications filed after July 4, 2025. If you filed before this date, check with USCIS to see if the old or new fee applies. For H-1B, F-1, and J-1 visas, the $250 fee is now required.
- Medicaid and CHIP: If you are a green card holder who applied before July 4, 2025, you may still be subject to the new five-year waiting period. States will contact you about new eligibility checks and work requirements.
- Asylum applications: The new $100 application and $575 work permit fees apply to all new filings. If you filed before July 4, 2025, check your receipt notice or contact USCIS for your status.
- Remittances: The 1% tax applies to all transfers sent after July 4, 2025, regardless of when you started sending money.
Next Steps and Practical Guidance
- Check your visa and immigration status: Visit the USCIS website for the latest forms, fee schedules, and updates.
- Review your health insurance: If you are losing Medicaid or CHIP, talk to your employer about coverage or shop for private insurance. Be aware that premium tax credits are now limited.
- Plan for higher costs: Budget for new visa fees, remittance taxes, and possible healthcare expenses.
- Stay informed: Watch for guidance from the IRS and Treasury on tax changes, and from your state Medicaid agency on new eligibility and work requirements.
- Seek help: Community organizations, legal aid groups, and the Indian Embassy can provide support and information. Advocacy groups are also preparing legal challenges to some of the bill’s provisions.
Broader Impacts and Community Response
Employers are closely watching for new IRS and Treasury rules, especially those who hire Indian talent. Payroll and HR departments will need to update systems for new tax and visa fee rules.
Advocacy organizations warn that the bill will increase poverty, health disparities, and family separation among immigrants. They are mobilizing to provide legal and financial help.
Indian community leaders are deeply concerned about the financial and emotional toll. Some are advising families to reconsider plans to move to the U.S., while others are helping those already here adjust to the new reality.
Internationally, the remittance tax and tougher enforcement may strain relations between the United States 🇺🇸 and India 🇮🇳, affecting student exchanges, business ties, and family connections.
Official Resources
For more information and updates:
– USCIS for immigration forms and fee schedules
– IRS for tax guidance and remittance tax details
– Centers for Medicare & Medicaid Services (CMS) for Medicaid and CHIP eligibility
– State Medicaid agencies for local rules and enrollment help
– Indian Embassy and consulates for consular support
Conclusion
The “One Big Beautiful Bill” brings major changes that affect nearly every part of life for Indians in the U.S. While some Americans may see tax cuts or new savings accounts, the law creates new barriers for immigrants—higher costs, less access to healthcare, and more risk of deportation. For Indians in the U.S., the bill’s promises of opportunity and security are replaced by exclusion and financial strain.
As reported by VisaVerge.com, these changes are already causing many in the Indian community to rethink their future in the United States 🇺🇸. If you are affected, stay informed, seek help, and plan carefully for the new rules. The American Dream may look different now, but knowing your rights and options is the first step to protecting yourself and your family.
Learn Today
One Big Beautiful Bill → A comprehensive U.S. law altering taxes, healthcare, immigration, enacted July 4, 2025, affecting many immigrants.
Medicaid → A government health program for low-income individuals; eligibility tightened for immigrants under new law.
Remittance Tax → A new tax on money sent abroad, starting at 1%, affecting immigrant families sending funds home.
Visa Integrity Fee → A $250 charge added to H-1B, F, and J visa applications to fund immigration enforcement.
USCIS → U.S. Citizenship and Immigration Services, the federal agency managing immigration and visa applications.
This Article in a Nutshell
The One Big Beautiful Bill, effective July 4, 2025, drastically alters U.S. immigration, taxes, healthcare, and enforcement, impacting millions, especially Indians. New fees, Medicaid restrictions, remittance taxes, and deportation funding create challenges. Indian visa holders and families must budget for higher costs and adapt to complex eligibility rules in this sweeping reform.
— By VisaVerge.com
