(THE NEWSMAN OF INDIA.COM) A newly proposed tax bill by House Republicans, introduced on May 12, 2025, could have significant implications for Non-Resident Indians (NRIs) living in the United States. A key provision in the legislation seeks to impose a 5% tax on international money transfers made by non-citizens—directly impacting millions of foreign workers who routinely send remittances to families abroad.

The broader bill aims to make the 2017 Tax Cuts and Jobs Act permanent, while increasing the standard deduction and extending the child tax credit to \$2,500 through 2028. U.S. President Donald Trump, currently in his second term, has strongly endorsed the legislation, calling it “GREAT” and urging swift passage by the Republican-led House.

Supporters argue the proposed remittance tax will help fund extended tax breaks and bolster border security, potentially generating billions for the U.S. Treasury. However, critics warn that the financial burden will fall disproportionately on hardworking immigrants, including a large NRI population, who rely on overseas transfers to support families back home.