Washington: U.S. President Donald Trump has announced a new policy called the “American Dream Tax,” requiring foreign-born U.S. residents to pay a one-time fee of $50,000 to apply for citizenship. The move has sparked intense debate, with critics arguing it unfairly benefits the wealthy while making naturalization nearly impossible for middle-class immigrants.

“We want the best and the brightest, and if they’re smart enough to be here, they’ll find a way to pay for it,” Trump said during a White House briefing. “It’s an investment in America.”

The new policy applies to all green card holders seeking U.S. citizenship. Previously, naturalization fees were around $1,200, but this dramatic increase means many long-term residents may be forced to delay or abandon their citizenship plans. Unlike the EB-5 investor visa, which allows applicants to pool funds or take loans, the American Dream Tax requires full payment upfront, further limiting access to permanent status.

Indian immigrants are expected to be among the most impacted by the policy. With an existing green card backlog stretching decades for some applicants, the added financial burden could make citizenship an unreachable goal for many. At the current exchange rate, $5,00,000 translates to around ₹43 crore—an amount that could be used to buy luxury property, invest in a business, or secure financial stability in India.

“This policy essentially creates a paywall for citizenship,” said immigration attorney Ramesh Iyer. “It disproportionately affects hardworking immigrants who have built their lives in the U.S. but don’t have massive wealth at their disposal.”

Trump, however, dismissed concerns, calling the tax a “bargain.” “People will pay,” he said. “The American Dream is worth it.”

Despite backlash, political analysts say the move aligns with Trump’s broader immigration policies, prioritizing wealthier applicants over those arriving through family-based or employment-based pathways. Some experts believe this could reduce the number of new U.S. citizens each year, further shaping the country’s immigration landscape.

While legal challenges are expected, the Trump administration appears determined to move forward. Immigration activists warn that if implemented, the policy could widen the gap between economic classes and redefine what it means to achieve the “American Dream.”