Trump’s $100K H-1B Visa Fee: How It Hits Indians and Challenges US Innovation

Trump’s $100K H-1B Visa Fee Shakes Global Tech: Impact on Indian Professionals and US Companies

US President Donald Trump has introduced a landmark change to the H-1B visa system, signing an executive order that mandates a $100,000 fee for all new visa applications. The administration justifies this move as a way to protect American jobs and ensure that only the “most skilled” foreign workers enter the country. However, experts warn that this sharp increase will hit Indian professionals the hardest and could unintentionally harm the US tech and innovation sectors.

The new rule takes effect from 12:01 am EDT on September 21, 2025, and requires employers to pay the hefty fee before an H-1B worker can enter the United States. The Departments of State and Homeland Security have been instructed to reject any petitions without proof of payment. While the order primarily targets new applicants, existing H-1B holders who travel overseas and require visa stamping will also be affected. Previously, administrative fees for H-1B visas were around $1,500, making the $100,000 charge a dramatic jump in costs. Re-entry during a typical three-year stay could run into several hundred thousand dollars. Exemptions will be rare, granted only at the discretion of the Homeland Security Secretary.

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Indians are expected to bear the brunt of this policy. Roughly 71–73% of H-1B approvals have gone to Indian nationals in recent years. In FY 2024 alone, over 200,000 Indian professionals obtained H-1B visas, meaning the financial exposure is immense. Even a conservative estimate of 60,000 affected workers translates to an annual cost of $6 billion, or about Rs 53,000 crore. For mid-level engineers earning $120,000 annually, the $100,000 levy could consume over 80% of their salary, making migration unfeasible for most except top earners. Indian students in the US transitioning from master’s or PhD programs could also see their career prospects severely limited.

The fee has far-reaching consequences for both US companies and Indian IT firms. Major Indian consultancies like Infosys, TCS, Wipro, HCL Technologies, and Cognizant rely on H-1B visas to place engineers onsite at American clients. The new levy could push companies to shift work back to India or near-shore locations like Canada and Mexico. US tech giants, banks, and telecom firms—Amazon, Microsoft, Meta, Citigroup, and Verizon among them—also depend heavily on H-1B talent. Startups and research labs that rely on niche international talent may struggle to justify the added cost, risking innovation and competitive edge.

The rationale for the fee is framed around reducing abuse of the H-1B program and prioritizing American graduates. Officials argue that companies will now be forced to train domestic talent rather than hire lower-cost foreign workers. This change fits into Trump’s broader immigration agenda, which also includes the Gold Card investor visa and the end of pandemic-era interview waivers. Together, these policies make entry harder for skilled workers and students while easing pathways for wealthy investors.

Going forward, fewer H-1B applications may be filed as small firms and recent graduates pull back. Annual renewal fees could further increase costs for employers, potentially pushing some Indian workers to return home and limiting career growth. Only highly specialized, high-paying roles may remain viable, turning the H-1B program into an exclusive channel rather than a broad skilled-worker pathway.

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While the policy may boost short-term revenue and appeal to domestic workers, analysts warn it risks undermining America’s innovation advantage. For Indian professionals, the $100,000 fee represents a major barrier, while for US companies, it threatens critical talent pipelines that power sectors like AI, cloud computing, and semiconductors. The long-term effect could be a shift of jobs and innovation offshore, affecting both economies significantly.

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