On September 19, 2025, U.S. President Donald Trump signed a proclamation introducing a $100,000 application fee for new H-1B visas. The rule took effect on September 21.
The White House has framed the move as a way to prevent “abuse” of the program and to push employers to hire Americans. “If you’re going to train somebody, you’re going to train Americans,” said Commerce Secretary Howard Lutnick at the signing.
Thousands of Indian families rely on this visa route, raising concerns about the proposed increase in the H-1B visa fee.
Who Will the H-1B Visa Fee Hike Affect Most?
The H-1B visa program enables U.S. companies to employ highly skilled professionals from abroad and is imperative in technology, medicine, finance, and academia. According to reports, over 70% of H-1B visas are issued to Indian nationals, many employed in Silicon Valley and other U.S. tech hubs.
Trump’s H-1B policy applies to new petitions filed after September 21. Existing H-1B workers and those with previously submitted applications are exempt. However, Indian IT firms that rely on filing thousands of applications each year will be heavily affected.
This is one of the most significant U.S. visa policy changes in decades, and it could have a substantial impact on how Indian companies operate in the American market.
Does the Fee Apply to Existing H-1B Workers?
The $100,000 fee will not apply to individuals already holding an H-1B visa. Those who filed before September 21 are also exempt. However, there are grey areas. If an Indian worker must leave the U.S. and re-enter through a consulate, or if they transfer employers, the new fee may be triggered.
Immigration lawyers are urging workers to clarify their status before traveling. This uncertainty has created anxiety among Indian professionals, especially those nearing visa renewal or planning to change jobs.
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Why Did the U.S. Introduce the $100,000 H-1B Fee?
The Trump administration argues that outsourcing firms have long misused the H-1B program. Officials say these companies flood the visa lottery and undercut U.S. workers. The $100,000 fee is intended to discourage such practices and force firms to prove the value of each hire.
A “national interest waiver” will allow exceptions in rare cases, where workers are deemed vital to U.S. security or welfare. However, details on how this waiver will function remain unclear.
Economists warn that the new fee could damage the U.S. economy. One estimate has already lowered growth forecasts from 2% to 1.5% due to reduced access to foreign talent.
H-1B Impact on India: What Does This Mean for IT and Remittances?
India, the largest source of H-1B talent, has strongly opposed the move. “They are afraid of our talent,” said Commerce Minister Piyush Goyal.
The Finance Ministry has warned that the policy could hit remittances, which reached $120 billion in 2024. A slowdown in U.S. work visas could reduce this inflow and affect middle-class families across India.
For IT giants like Infosys, Wipro, and TCS, the cost of sending workers to the U.S. has risen sharply. Smaller outsourcing firms, which rely on high-volume applications, may struggle to justify the new expense.
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How Will Indian Students Be Affected?
For many Indian students, the H-1B is the next step after completing their U.S. studies. It offers a chance to stay, work, and build a life abroad. With the H-1B visa fee hike, that path looks far more expensive.
While large companies may still sponsor top graduates, smaller employers may hesitate. Fields like data science, healthcare, and engineering—which already face shortages—could see fewer opportunities for foreign graduates.
This could encourage Indian students to consider Canada, Australia, or Germany, where post-study work visas are more affordable and easier to obtain.
Global Fallout of U.S. Visa Policy Changes
The U.S. has long been the top destination for skilled migrants, but that dominance may now be tested.
Countries like Canada and Australia already offer faster and cheaper options for skilled worker visa alternatives in the USA. Canada’s Global Talent Stream can process work permits in as little as two weeks. Germany’s Blue Card provides a clear route to permanent residency for tech professionals.
If the U.S. becomes too costly, Indian talent may shift toward these destinations. This shift could strengthen India’s ties with other economies while reducing dependence on American markets.
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What’s at Stake for the U.S. and India?
Big tech companies such as Google, Microsoft, and Amazon may absorb the H-1B visa fee hike, but startups, universities, and hospitals are at risk. These institutions often depend on affordable international talent.
The H-1B impact on India is twofold: fewer job opportunities abroad and reduced foreign earnings. Families that once planned their futures around U.S. jobs may now look to Europe, Canada, or even homegrown opportunities.
Diplomatically, the issue may add strain to India–U.S. relations. The United States has long relied on Indian talent to drive innovation, but high barriers may force India’s brightest minds to seek opportunities elsewhere.
The latest H-1B visa news suggests this debate is bigger than immigration. It’s about whether the U.S. will continue to be the first choice for global talent, or whether the world’s innovators will find new destinations.
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