The One Big Beautiful Bill (OBBB), signed into law by President Donald Trump, is set to significantly impact green card holders and legal immigrants by restricting access to some health benefits and imposing new taxes on overseas remittances.
President Donald Trump’s recently signed One Big Beautiful Bill (OBBB) introduces measures that could heavily impact legally present immigrants, including those holding green cards, by changing how they access certain health benefits and imposing a new tax on money sent abroad.
The Congressional Budget Office (CBO) estimates that the OBBB will lead to 11.8 million more Americans being uninsured by 2034 and will increase the federal deficit by almost $3.3 trillion over the next decade. This legislation could result in 1.3 million lawfully present immigrants losing their health insurance by 2034, according to the CBO. Trump signed the bill into law on July 4.
Under current U.S. policy, lawful permanent residents, refugees, survivors of domestic violence, and individuals on valid work or student visas can purchase insurance through the Affordable Care Act (ACA) marketplace. Many of these groups qualify for federal tax credits that help reduce monthly insurance premiums, while others may be eligible for Medicaid or Medicare, based on income and other criteria.
The OBBB, however, intends to limit access to these benefits. It may prevent some lawfully present immigrants from benefiting from federal health insurance subsidies. Immigrants most affected could include low-income green card holders still within the five-year waiting period for Medicaid along with refugees and survivors of domestic violence, who may face a loss of subsidized health insurance.
If the bill is fully enacted, only green card holders, select individuals from Cuba and Haiti, and some Pacific Island communities would continue to receive federal benefits. Most immigrant groups, regardless of legal status, could lose access to affordable healthcare options.
Alex Nowrasteh, vice president for economic and social policy studies at the Cato Institute, commented on the bill, noting that immigrants consume fewer government-supplied health benefits compared to native-born Americans. Nowrasteh views the bill as a start to widen this gap, suggesting it could benefit taxpayers without adversely affecting the health of excluded non-citizens.
In addition to healthcare changes, the OBBB will introduce a 1 percent tax on remittances sent overseas, impacting millions of immigrant families who send financial support to relatives in their home countries. Supporters of the measure argue it could generate significant federal revenue, but critics point out it places a financial strain on low to middle-income workers reliant on these remittances to support their families abroad.
The legislation also allocates significant funds to U.S. Immigration and Customs Enforcement (ICE), including $45 billion to expand detention capacities to nearly 100,000 beds, $14 billion for transportation and deportations, and $8 billion for hiring 10,000 additional deportation officers.
Veronique de Rugy, a Senior Research Fellow with the Mercatus Center, highlighted the economic implications of the tax on remittances, explaining that it effectively reduces household income, potentially pushing families back into poverty and damaging local economies.
Abigail Jackson, a White House spokesperson, emphasized that the OBBB aims to protect vulnerable Americans by eliminating waste and fraud in Medicaid and fulfilling President Trump’s campaign promise to strengthen border security and deport criminal illegal aliens.
Conversely, John Slocum, Executive Director of Refugee Council USA, expressed concerns about the bill’s potential to reverse decades of bipartisan support for newcomer integration. He warned that refugees and immigrant families could face significant hardships, impacting their recovery and integration into U.S. communities.
The OBBB’s enactment might result in hundreds of thousands of lawfully present immigrants, including asylum seekers, trafficking survivors, and refugees, losing access to ACA marketplace coverage, with the elimination of subsidies that help make healthcare premiums more affordable.