Trump’s $100,000 H-1B Visa Fee Shakes Indian IT

The H-1B visa has long been the lifeline of Indian IT companies, helping them send skilled professionals to the United States. But in a landmark move, the Trump administration has now imposed a $100,000 (₹88–90 lakh) annual fee on employers sponsoring H-1B workers.

This decision, signed as part of a new presidential proclamation, has sent shockwaves across the tech industry and raised serious questions about the future of skilled migration to the U.S.

What Exactly Has Changed?

Starting September 21, 2025, companies filing H-1B petitions for workers outside the U.S. will need to pay a hefty $100,000 per year. Without this payment, visa processing will not move forward.

The Departments of State and Homeland Security will verify proof of payment during every application, adding new layers of compliance. Employers must also retain payment records for potential audits.

This fee comes in addition to existing costs like registration and petition filing fees, making H-1B sponsorship significantly more expensive than ever before.

Why Was This Introduced?

President Trump has argued that the H-1B system is being exploited by companies that replace American workers with cheaper foreign labor. By setting a steep annual fee, the administration hopes to:

Discourage bulk hiring of H-1B workers.
Ensure only highly skilled, “indispensable” workers are brought in.
Protect local wages and reduce dependence on foreign talent.

The White House has also described H-1B abuse as a “national security concern.”

Who Will Be Affected?

The impact is likely to be felt most strongly by Indian IT companies, which account for the majority of H-1B visa applications. Firms such as Infosys, Wipro, TCS, and Tech Mahindra routinely send thousands of engineers to the U.S. every year.

At a cost of nearly ₹90 lakh per employee per year, companies may now:

Limit the number of H-1B filings.
Prioritize only senior or niche roles for sponsorship.
Shift operations to offshore or remote work models.

For skilled Indian workers, this could mean fewer opportunities to move to the U.S. under the H-1B program.

Are There Any Exemptions?

Yes, the proclamation allows the Secretary of Homeland Security to grant exemptions if hiring certain workers is deemed to be in the U.S. national interest. However, details on how liberally these exemptions will be applied remain unclear.

Industry Reactions

The tech industry has reacted with alarm. Reports suggest that companies like Microsoft have already issued urgent advisories to their foreign employees. Industry bodies are warning that this move could:

Drive up project costs.
Slow down innovation.
Make the U.S. less attractive for global talent.

Some experts predict legal challenges, arguing that the policy could hurt U.S. competitiveness instead of helping it.

What Lies Ahead

The $100,000 H-1B visa fee is set to reshape the landscape of skilled migration. For Indian IT companies, it’s not just a financial hurdle—it’s a strategic challenge that may change hiring and deployment models entirely.

As the rule takes effect from September 2025, all eyes will be on whether companies absorb the cost, cut down sponsorships, or push for policy reversals through legal and diplomatic channels.

One thing is clear: for thousands of Indian professionals dreaming of a career in the U.S., the path has just become much tougher.