New Tax Bill’s Major Impact on Immigrant Healthcare and Benefits

Key Takeaways

• July 2025 tax bill restricts immigrant access to Medicaid, ACA credits, and SNAP benefits nationwide.
• $65 billion in new immigration fees raise visa, asylum, and court costs with no waivers allowed.
• Bill provides $170 billion over four years for border wall, ICE, CBP, and immigration enforcement.

As of July 2025, the United States 🇺🇸 is on the verge of enacting a sweeping new tax bill that will reshape the landscape for immigrants in nearly every aspect of daily life. Passed by both the Senate and House, and expected to be signed into law by President Trump, this legislation brings major changes to healthcare, welfare, taxes, immigration fees, and enforcement. The bill, spanning 870 pages, is one of the most significant overhauls in recent years, and its effects on immigrants—both documented and undocumented—are far-reaching.

Below is a detailed, accessible breakdown of what immigrants, their families, and those who support them need to know about the new tax bill, how it will change eligibility for key benefits, what new costs to expect, and what practical steps to consider next.

Who Is Affected and What Is Changing?

Who: Immigrants of all statuses—green card holders, refugees, asylees, visa holders, DACA recipients, and undocumented individuals—will see changes. U.S. citizens who send money abroad or live in mixed-status families are also impacted.

What: The new tax bill narrows eligibility for healthcare and welfare programs, raises and introduces new immigration fees, changes tax rules for immigrants, and increases funding for immigration enforcement.

When: The bill passed both chambers of Congress in early July 2025 and is expected to be signed into law by President Trump within days.

Where: These changes apply across the United States 🇺🇸.

Why: Supporters say the bill will strengthen the country’s finances and border security. Critics argue it will increase hardship for immigrants and their families.

How: Through changes to federal law, the bill rewrites who can access benefits, how much immigrants must pay for legal processes, and how the government enforces immigration rules.

Healthcare and Welfare: Fewer Options for Immigrants

Medicaid, Medicare, and ACA Tax Credits

The new tax bill drastically limits which immigrants can get subsidized healthcare. Here’s what’s changing:

• Medicaid and Medicare:
  • Only green card holders, Cuban/Haitian parolees, and COFA nationals (citizens of the Federated States of Micronesia, Republic of the Marshall Islands, and Palau) can get these benefits.
  • The 5-year waiting period for Medicaid stays the same, so even eligible immigrants must wait five years after getting their green card.
  • No longer eligible: Asylees, refugees, people paroled into the U.S. for at least one year, conditional entrants before 1980, victims of trafficking, battered spouses/children/parents, those with withholding of deportation, and American Indians born in Canada.
• ACA Marketplace Premium Tax Credits:
  • Now unavailable to most immigrants, including asylees, refugees, parolees, people with work permits (EAD), non-immigrant visa holders (like H-1B workers, students), U and T visa holders, DACA recipients, Special Immigrant Visa holders from Iraq or Afghanistan, TPS, DED, SIJ, and others.
  • Immigrants with income under 100% of the Federal Poverty Level (FPL)—including green card holders—can no longer get ACA tax credits. This is a major change, especially for elderly immigrants and sponsored parents who often have low incomes.
  • Repayment rules: If you get too much in ACA tax credits, you must now pay back the full amount, no matter your income. Before, there was a cap on how much you had to repay.

SNAP (Food Stamps)

• Who can still get SNAP: Only green card holders, Cuban/Haitian parolees, and COFA nationals.
• Who loses access: Refugees, asylees, victims of trafficking, Iraqi and Afghan SIV holders, Hmong or Highland Laotian tribal members, parolees, conditional entrants, and battered non-citizens.

Bottom line: Many immigrants who once relied on Medicaid, Medicare, ACA tax credits, or SNAP will lose access, making it harder to get healthcare and food assistance. According to analysis by VisaVerge.com, these changes are expected to increase hardship for immigrant families, especially those with elderly or vulnerable members.

Immigration Fees: Higher Costs Across the Board

The new tax bill introduces a wide range of new fees and increases many existing ones. These fees are expected to raise $65 billion and, in most cases, cannot be waived—even for those who cannot afford them.

Visa and Travel Fees

• $250 visa integrity fee for all nonimmigrant visa applicants (like tourists, students, and workers). This fee may be refunded if the applicant follows all visa rules, but the refund is not guaranteed.
• $24 fee for every Form I-94 (the document showing legal entry and status in the U.S.). Form I-94 official link
• $30 EVUS fee for Chinese nationals using the Electronic Visa Update System.

Humanitarian and Relief Applications

• $100 to apply for asylum, plus a $100 annual fee while the application is pending.
• $550 for the first work permit (EAD) for asylum seekers, $275 for renewals. No fee waivers allowed.
• $550 for parolee or TPS initial EADs, valid for only one year or the length of status, whichever is shorter. Renewals are $275. No fee waivers allowed.
• $1,000 parolee fee (some exemptions apply).
• $250 Special Immigrant Juvenile fee.
• $500 TPS fee.

Immigration Court Fees

• $5,000 fee for people removed in absentia (not present at their hearing) and then rearrested by ICE.
• $5,000 fee for anyone arrested between ports of entry (illegal entry).
• $1,500 to adjust status with an immigration judge.
• $1,050 to file a waiver with an immigration judge.
• **$900 to appeal or file a motion to reopen/reconsider a judge’s decision.
• **$600 to apply for suspension of deportation.
• **$600 to apply for LPR cancellation of removal, $1,500 for non-LPR cancellation.

Automatic inflation adjustment: Many of these fees will go up each year with inflation.

No fee waivers: Most of these fees cannot be waived, even for those who cannot pay.

Taxes: New Burdens and Lost Benefits

Remittance Tax

• 1% tax on remittances sent through non-bank and non-bank card services (like Western Union, Moneygram, Wise, OFX).
• No exemption for U.S. citizens: Everyone using these services pays the tax.
• Privacy concerns: Money transfer companies must collect more personal information about senders and recipients.
• Impact: Many immigrants send money to family abroad. This new tax reduces the amount families receive and may push some to use riskier, informal ways to send money.

Child Tax Credit

• Parent must have a Social Security Number (SSN): Before, parents without legal status could claim the credit using an ITIN (Individual Taxpayer Identification Number). Now, only parents with SSNs can claim it.
• Effect: Many mixed-status families (where some members are citizens and others are not) will lose this important tax benefit.

Other Tax Changes

• No new tax exemptions for tips and overtime pay for immigrants without SSNs.
• $4,000 deduction for older Americans filing the standard deduction is only for those with SSNs.
• Education tax credits (like the American Opportunity Tax Credit and Lifetime Learning Credit) now require an SSN.
• New tax-deferred savings accounts (“Trump accounts”) are only for U.S. citizen children with at least one parent who has an SSN and current work authorization.

For more details on tax credits and eligibility, visit the IRS official tax benefits page.

Enforcement: Billions More for Border and Deportation

The new tax bill pours $170 billion over four years into immigration enforcement and border security:

• $46.5 billion for building and maintaining the border wall.
• $11.55 billion per year for Department of Homeland Security (DHS) border enforcement and technology.
• $11.25 billion per year for more immigration detention beds.
• $7.5 billion per year for hiring, transportation, and deportation by ICE (about 10,000 new ICE agents).
• $4.3 billion per year for state and local law enforcement to help with border enforcement.
• $1.95 billion per year for hiring more Customs and Border Protection (CBP) officers.
• $0.8 billion per year for hiring more immigration court staff.

What this means: The government will have more resources to detain and deport immigrants, and to process more cases in immigration courts. This could lead to more arrests, longer detention times, and faster deportations.

Political and Legislative Background

• The bill passed the House by a narrow margin (218-214) on July 3, 2025, with two Republicans joining all Democrats in voting “no.”
• Speaker Mike Johnson (R-La.) called it a “transformative package” for the country.
• Democrats, led by Hakeem Jeffries, strongly opposed the bill, saying it would hurt immigrants and low-income families.
• The Senate passed the bill with Vice President JD Vance breaking a 50-50 tie.
• President Trump is expected to sign the bill into law within days.

What Do Experts and Advocates Say?

• Immigrant advocacy groups warn that the bill will increase poverty and hardship for immigrants and their U.S. citizen children by cutting off access to healthcare, food, and tax benefits.
• The remittance tax is criticized as unfair and privacy-invasive, and may push immigrants to use unsafe ways to send money.
• The Tax Policy Center says the bill gives tax cuts to wealthier Americans but increases taxes and reduces benefits for many immigrant and low-income families.
• Legal aid organizations expect more immigrants will need help navigating the new rules and paying higher fees.

What Should Immigrants and Their Families Do Now?

1. Check your eligibility: If you rely on Medicaid, Medicare, ACA tax credits, or SNAP, review your status. Many categories are no longer eligible.
2. Plan for higher fees: If you need to apply for a visa, work permit, asylum, or go to immigration court, budget for new and higher fees.
3. Review tax filing status: Make sure you have an SSN if you plan to claim the child tax credit or other tax benefits.
4. Consider remittance options: If you send money abroad, factor in the new 1% tax and privacy requirements.
5. Stay informed: Watch for updates from official sources like USCIS, DHS, and IRS.
6. Seek help: Legal aid groups and immigrant rights organizations can help you understand your options and rights under the new law.

Summary Table: Key Changes for Immigrants

Looking Ahead

The new tax bill marks a major shift in U.S. 🇺🇸 immigration and tax policy. Many immigrants will face new barriers to healthcare, food, legal status, and financial support for their families. As reported by VisaVerge.com, these changes will likely increase hardship for millions of immigrant families and could reshape the country’s approach to immigration for years to come.

Stay informed, seek help if needed, and check official government resources for the latest updates as the new law takes effect.

Learn Today

Medicaid → A government health program offering medical benefits to eligible low-income individuals including some immigrants.
ACA Tax Credits → Financial assistance lowering insurance premiums for Marketplace health plans, now restricted for most immigrants.
Form I-94 → A U.S. Customs and Border Protection document recording lawful entry and status for nonimmigrants.
Remittance Tax → A 1% tax on money transfers sent abroad via non-bank services, affecting immigrant families.
DACA → Deferred Action for Childhood Arrivals, a U.S. immigration program that protects certain undocumented immigrants.

This Article in a Nutshell

The 2025 U.S. tax bill drastically cuts immigrant healthcare and welfare access, raises heavy immigration fees, and boosts enforcement funding, impacting millions of immigrants and families nationwide with higher costs and fewer benefits.
— By VisaVerge.com