Overview

• The House Budget Committee narrowly passed the bill on May 18, moving it to a full House vote expected this week.
• The legislation imposes a 5% excise tax on international money transfers by non-citizens, including H-1B visa holders and green card holders, with no exemption threshold.
• Projected to raise $22 billion over a decade, the tax will help fund border wall construction, deportation efforts, and the extension of Trump-era tax cuts.
• Indian diaspora in the US could face an annual tax burden of $1.6 billion, potentially reducing remittance flows and impacting India's economy.
• If enacted, the tax will take effect on January 1, 2026, prompting some immigrants to accelerate remittances before the deadline.