Trump's ‘One Big Beautiful Bill' a blow to Indian students in US? $170 billion funds allocated for ICE; 1% remittance tax adds to burden

Time of India

19-07-2025

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The recently enacted Donald Trump's 'One Big Beautiful Bill' is potentially turning out to another blow to Indian students in the United States by allocating approximately $170 billion to Immigration and Customs Enforcement (ICE) for expanding deportation operations.
This legislation strengthens enforcement agencies' authority to monitor local communities and track visa violations, according to study abroad platform executives. Students on Optional Practical Training (OPT) face heightened risks, as even minimal delays in securing employment or exceeding visa duration could result in severe penalties.
Additionally, the legislation's new 1% remittance tax is anticipated to impact students who transfer funds to their home country for family support or loan repayments.
"Even a small tax can affect low-income students — every dollar counts when supporting tuition or families back home," said Adarsh Khandelwal, cofounder of Collegify, quoted by Economic Times. This taxation applies to international transfers by F-1 student visa holders, H-1B workers, and green card holders using traditional payment methods.
A $10 tax would apply to a $1,000 transfer to India.
Students paying full fees without scholarships will not be subject to this tax, which becomes effective after January 1, 2026.
Education consultants view this tax as a minor inconvenience rather than a significant barrier. "A 1% rate is annoying, not prohibitive," said Nikhil Jain, founder of ForeignAdmits, as quoted by ET. "Students are resourceful; they'll adapt by consolidating transfers, exploring digital wallets, or simply factoring it into their budget," he added.
The tax represents an additional concern for Indian students in the US.
Since January, increased scrutiny of non-immigrant visa holders and deportation of unauthorised residents has heightened anxiety. Recent intensification of visa procedures and social media monitoring has caused unease. "Students are becoming hypervigilant about everything – their social media presence, their financial transactions, their visa status," Jain of ForeignAdmits said.
"This tax is just adding to the paranoia."
Experts report that students and visa applicants are removing previous social media content and exercising increased caution regarding their online activities.
The legislation also reduces federal support, including Medicaid and SNAP benefits for state colleges, which previously assisted numerous students.
This reduction might increase institutions' reliance on international students paying full fees, who are exempt from the new remittance tax.
Nevertheless, only a small proportion of Indian students attend prestigious US universities at full cost, with most relying on financial assistance or attending mid-tier institutions.
Education experts suggest that prospective Indian students might now consider alternative study destinations.
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