President Donald Trump is preparing to implement a 5% tax on money sent home by non- citizens. This proposed bill, headed to the House of Representatives soon, will apply to money transfers made by foreign nationals but exclude US citizens and green card holders.

The impact on Indian communities could be devastating. Financial experts estimate that just for money flowing back to India, this tax would collect a staggering $1.6 billion from hardworking Indians in America who regularly support families back home.For families depending on this support for medical expenses and children’s education, this cut feels particularly harsh.

According to World Bank reports, India has maintained its position as the world’s top remittance-receiving country since 2008. Our share of global remittances has grown impressively from 11% to 14% by 2024, making Indian nationals in America a significant contributor to both economies.

The timing couldn’t be worse for many families already struggling with rising costs everywhere. For those sending money regularly to aging parents or investing in property back home, this tax represents yet another financial burden in an already challenging economic landscape.

The administration seems determined to push forward with this policy despite concerns about its impact on immigrant communities who contribute substantially to America’s economy while supporting family abroad.

The bill is being considered by the US Congress and could become law as early as June-July 2025.