The Impact of the One Big Beautiful Bill Act on U.S. Immigration

As of July 4, 2025, the One Big Beautiful Bill Act (OBBBA) officially became law, and it is poised to completely reshape U.S. immigration policy. The OBBBA is a comprehensive budgetary legislation that tremendously impacts U.S.  immigration by (1) dramatically increasing funding for immigration enforcement, (2) inflating immigration fees, (3) taxing remittances, and (4) restricting immigration access to vital government benefits. Here’s what you need to know:

1) Dramatic Increase in Funding for Border Security and Interior Immigration Enforcement

OBBBA funnels an extraordinary $170 billion in funding toward immigration and border enforcement over the next several years.

Key allocations include:

• $46.5 billion for physical barriers and infrastructure along the southern border, including lights, camera, and detection sensors.

• $45 billion added for increasing detention capacity which expands ICE’s ability to detain significantly.

  • Currently there are major concerns regarding inhumane detention conditions. Due to limited detention spaces, detainees are often moved almost daily from one facility to another, both within Florida and across state lines. To accommodate the growth of ICE detentions, Florida has already opened two new detention centers, known as Alligator Alcatraz and Deportation Depot. With the new funding allocations many more are expected throughout the country.

• $29.9 billion for hiring additional ICE agents, carrying out deportation operations, and transport costs.

• Additional billions to strengthen CBP, border technology, and reimburse state/local partners in carrying out immigration enforcement.

The additional fundings mean expected escalated enforcement not only at the border but within the country—more immigration officers, deeper interior sweeps, expanded detention infrastructure, and mass deportation capacity unprecedented in U.S. history.

2) Dramatic Changes to Immigration Fees

OBBBA introduces various fees for immigration-related applications with steep increases. Some of the applications affected by the new fees are asylum, TPS, certain work permits, appeals, and certain motions and applications filed in immigration court. The OBBBA also introduces a “visa integrity fee” of $250 for visa applicants, alongside increases in other travel-related fees.

Key Fee Changes to Immigration Applications:

• Asylum applicants- people seeking protection in the U.S.- must now pay a minimum fee of $100 to apply and an additional $100 for every year the application is pending. Asylum applicants must also pay $550 to apply for an initial work permit. The OBBBA does not allow for fee waivers or reductions. The fees for all of the above were $0.

• TPS applicants must now pay a minimum of $500 in addition to the $50 USCIS filing fee to apply.

• Special Immigrant Juvenile Status Applications- for children who are abandoned, abused, or neglected by one or both parents- now carry a fee of $250, whereas the fee was previously $0.

• A new refundable ‘Nonimmigrant Visa Integrity Fee’ of $250 is required upon issuance of a nonimmigrant visa by the Department of State (DOS), such as a student visa, work visa, or tourist visa. The fee is refundable at the expiration of the visa if the visa holder was compliant with visa conditions.

• The fee for applying for an I-94 Arrival/Departure Record at a land point of entry will rise from $6 to $24, and may be expanded to additional applicants in the future; the cost for the Electronic System for Travel Authorization (ESTA) will jump from $4 to $13; and the fee for the Electronic Visa Update System (EVUS) applicable to certain Chinese nationals with ten-year B1/B2 visas will increase from $8 to $30.

• Inadmissible noncitizens who are apprehended between ports of entry by CBP are required to pay a penalty fee of $5000, whereas previously there was a $50 to $250 civil penalty fee.

• A $5,000 fee for “in absentia” removals—when someone fails to appear in immigration court—with criminal consequences for non-payment.

• Immigration applications filed in immigration court and motions to reopen or reconsider now carry additional fees between $500 to $1500, thus creating additional barriers to  defense from removal.

  
  

These fee hikes may serve as effective barriers to access to lawful immigration, especially for low-income individuals seeking due process or humanitarian protections.

3) Imposed Tax on Remittances

For the first time at a federal level, OBBBA imposes a 1% tax on remittances sent to foreign countries, with some exceptions, started January 1, 2026. The type of remittances taxed under the OBBA include transfers of cash, money orders, cashiers’ checks, and “similar physical instruments.” However, it excludes transfers sent from certain financial institutions or funded with a US debit or credit card. Therefore, a person who goes to a money transfer service like Western Union and pays in cash will be taxed, while someone sending funds directly from their U.S. bank account or using a debit or credit card may avoid the tax. Families who regularly send money abroad should carefully consider which transfer method they use, since choosing an exempt option could prevent unnecessary costs over time.

This tax applies to equally to anyone sending money outside of the U.S. including, citizens, green card holders, students, visa holders, and non-citizens. However, the tax primarily impacts individuals who rely on non-bank methods to send money abroad, such as wire transfer services and cash-based transactions, which are most commonly used by immigrants to support family members overseas. This creates a disproportionate burden on immigrants and lower-income households who may lack access to traditional banking services.

4) Restrictions on Federal Benefits Access

The new OBBBA law makes it much harder for many immigrants to qualify for government help with healthcare, food, or tax benefits. Before this law, undocumented immigrants were already excluded from programs like Medicaid, Medicare, food stamps (SNAP), and subsidized health insurance. Now, even many people who are here legally will lose access.

Only green card holders, certain Cuban and Haitian nationals, and individuals from countries with special compacts (Palau, Micronesia, and the Marshall Islands) can still qualify for most federal programs. This means refugees, asylees, survivors of domestic violence or trafficking, Temporary Protected Status holders, and people here on valid visas may no longer get coverage or support they once relied on.

While lawfully present immigrants may still purchase unsubsidized health insurance through the ACA marketplaces, the loss of eligibility for federally funded programs will mean higher out-of-pocket costs, fewer safety net protections, and greater financial strain for families who already face significant hurdles.

Additionally, immigrant families will no longer qualify for the Child Tax Credit (CTC) if the parents or qualifying child lacks a social security number. Millions of children in mixed-status households will lose this important anti-poverty benefit.

Conclusion

The passage of the One Big Beautiful Bill Act (OBBBA) marks a turning point in U.S. immigration law. With increased enforcement funding, higher application fees, new remittance taxes, and tighter restrictions on access to federal benefits, immigrants will face new challenges in securing lawful status, protecting their families, and planning for the future. These changes underscore the importance of having clear legal guidance when navigating an already complex system.

At the Law Office of S.A. Peterkin, we remain committed to supporting individuals and families through these transitions. Whether you need help understanding how OBBBA affects your case, preparing for increased costs, or exploring alternative legal options, our team is here to help.

For personalized advice, call us at 321-325-1125 or visit www.sapeterkinlaw.com to schedule a consultation.