One of the central pillars of the sweeping “One Big Beautiful Bill Act,” signed into law by President Trump on July 4, is a crackdown on undocumented immigration, but its impact goes well beyond border enforcement.
At nearly 900 pages, the legislation includes provisions that could disrupt the lives of legal immigrants — from health care rollbacks to remittance taxes and increased visa scrutiny — targeting those who have long played by the rules.
While the public framing of the bill has emphasized national security and law enforcement, its broader implications mark a deeper shift in how the U.S. treats immigrants, both undocumented and lawful.
Less than 48 hours after the bill’s signing, many law-abiding immigrants are sounding the alarm. These are individuals who have spent years navigating the legal immigration system, integrating into American life through the channels the government has long endorsed.
Many H‑1B holders and immigration activists contacted for this story were unwilling to speak on record, a reflection of the growing paranoia, even among advocates, in Trump’s America.
One provision drawing particular concern among immigrant communities, including Indian Americans across the U.S., is the rollback of health care benefits. The bill doesn’t just target the undocumented; it also puts legally present immigrants at risk of losing coverage.
Under current law, many immigrants, such as green card holders, refugees, domestic violence survivors, and individuals on work or student visas, can purchase insurance through the Affordable Care Act (also known as Obamacare) marketplace. In many cases, they receive tax credits to lower costs. Some may also qualify for Medicaid or Medicare, depending on income and eligibility.
The new law sharply curtails that access. If fully implemented, it would bar most lawfully present immigrants from receiving federal health benefits. Only green card holders, individuals from Cuba or Haiti, and certain Pacific Island nationals would remain eligible. Everyone else, regardless of legal status, could be cut off from critical health support.
Low-income green card holders still within the five-year waiting period for Medicaid, refugees, and survivors of domestic violence are among those who will lose subsidized coverage under the new law.
According to Politico, several states are bracing for uncompensated care costs that will result from the healthcare rollback. New York alone could lose $3 billion in federal funds, with an estimated 225,000 immigrants losing coverage.
The Congressional Budget Office estimates that 1.3 million lawfully present immigrants will be uninsured by 2034 due to these provisions.
“Indians on work visas don’t get Medicaid, so cuts won’t affect them directly,” says immigration consultant Netra Chavan, who is registered in California. “But they might still feel the impact through higher healthcare costs or fewer services, only if the visa community relies on public health programs.”
While those on work visas, such as H-1B and L-1, may not see an immediate impact, many in the Indian American community worry that ripple effects are just around the corner.
Manish, a software engineer on an H-1B visa who requested that his surname not be used, is among those concerned.
“We have been playing by the book and doing everything that the law requires us to but the road to legal immigration in America which was fraught with unending delays got a little more steeper – may be indirectly because the new bill also talks about more funding for agencies like ICE, border patrol as well as immigration judges,” he says.
The legislation earmarks $29.9 billion to expand ICE’s workforce, including the hiring of 10,000 additional personnel by 2029. It also funds 80,000 new detention beds and allocates $14.4 billion for the removal and transportation of individuals. Additional funds are set aside for facility upgrades, technology improvements, and fleet modernization.
“It may mean that more funding for immigration judges may mean more scrutiny, more vetting, and anecdotally, such steps have sometimes derailed even the legal procedures, throwing people waiting in line for their permanent residencies or work permits into an elongated wait,” Manish adds.
A Seattle-based immigration activist agrees.
“While the bill may not be really affecting the legal immigrants right now but with so much happening you can never tell what repercussions it may bring,” the activist told the American Bazaar, on condition of anonymity. “We already know that with increased immigration judges funding there may be a reduction on the asylum cases and the huge backlog there. There is also a higher risk of more ICE enforcement. The thing is, if they can get anyone, they will try to get them. So, yes, there is a fear and paranoia.”
Beyond enforcement, experts warn the bill could entangle immigrants in an even more burdensome legal and bureaucratic system.
“The Big Beautiful Bill is rooted in the goal of putting American workers first in the immigration system,” says Chavan. “By tightening rules around programs like the H‑1B visa, the bill seeks to ensure that U.S. employers prioritize qualified American candidates before turning to foreign talent. While this approach is designed to strengthen the domestic workforce, it may also reduce opportunities for highly skilled professionals from countries like India, who have long contributed to America’s economy in fields such as technology, healthcare, and education.”
But from a legal standpoint, how might the sweeping legislation affect foreign workers and legal immigrants beyond just health care, particularly when it comes to enforcement and the financial burden on those supporting families overseas?
Chavan explains, “The bill also expands funding for immigration enforcement, aiming to prevent fraud through site visits, audits, and increased background checks. While this is intended to uphold the credibility of legal immigration, it can lead to longer processing times and added stress for compliant employers and visa holders. In addition, the bill introduces a 1% remittance tax on money sent abroad. For Indian workers who regularly send money home to support their families, this tax creates an extra financial burden and may discourage continued employment in the U.S.”
Another stated goal of the legislation is to raise wages by reducing reliance on lower-cost foreign labor. However, the proposed increases in visa and application fees — combined with limited job mobility and heightened scrutiny — could make it more difficult for immigrants to advance professionally. Families of visa holders, such as H‑4 spouses and children, may also experience delays in work authorization and travel, disrupting their stability and long-term plans.
While the legislation emphasizes enforcement and job protection for American workers, experts argue it misses an opportunity to support long-standing legal immigrants — including Documented Dreamers, skilled professionals stuck in the green card backlog, and H‑4 dependents. Could a more balanced, future-ready approach have been possible?
“President Trump’s ‘Big Beautiful Bill’ reflects a strong commitment to national security, immigration enforcement, and prioritizing American workers,” says Chavan. “However, to build a truly fair and future-ready immigration system, it could have also addressed the unique challenges faced by decade-old legal immigrants. By including protections for Documented Dreamers, offering relief to highly skilled professionals stuck in the green card backlog, and ensuring continued work authorization for H‑4 dependents without employment gaps, the bill would have acknowledged the valuable contributions of families who have lived lawfully and contribute meaningfully to American society.”