India, home to many H-1B recipients, is going through a turmoil right now. The move has heightened anxieties for IT professionals.
Published Sep 21, 2025 | 5:45 PM ⚊ Updated Sep 21, 2025 | 5:45 PM
US President Donald Trump
Synopsis: US President Trump imposed a $100,000 fee on new H-1B visas effective 21 September 2025, targeting “systemic abuse” by IT firms displacing American workers. Sparing current holders, the move hits Indian tech aspirants hardest, risking job plans amid national security concerns. Tech giants scramble, while legal challenges loom as the policy aims to protect US wages until September 2026.
US President Donald Trump signed a proclamation imposing a $100,000 (₹88,09,180) one-time fee on new H-1B visa applications, effective today, in a measure aimed at curbing what the White House describes as “systemic abuse” of the programme by tech and outsourcing firms.
The move seeks to safeguard US jobs, wages, and national security, but has already sparked widespread confusion, corporate panic, and threats of legal challenges. The Indian workforce in the US will bear the maximum brunt of this.
Trump, speaking after the signing in the Oval Office, framed the changes as “America First” economics.
For Indian H-1B hopefuls, the financial barrier is staggering. With an estimated 70-80 percent of the 85,000 annual H-1B visas awarded to Indians—many from IT hubs like Bengaluru and Hyderabad—the new fee could render applications unviable for smaller firms and startups.
The H-1B visa, designed to attract highly-skilled temporary workers in STEM field, has long been a cornerstone of America’s innovation economy. However, the proclamation argues that it has been “deliberately exploited” to displace American employees with lower-paid foreign labour, particularly in IT.
Citing data showing the foreign STEM workforce doubling to 2.5 million between 2000 and 2019 – while overall STEM employment rose by just 44.5 percent – the document highlights how IT firms now account for over 65 percent of H-1B approvals, up from 32 percent in fiscal year 2003.
“Large-scale replacement of American workers through systemic abuse of the programme has undermined both our economic and national security,” the proclamation states.
American IT workers, the document claims, have even been forced to train their foreign replacements under nondisclosure agreements as a condition of severance.
The policy also flags national security risks, including probe into H-1B-reliant firms for visa fraud, money laundering, and racketeering.
Under the new rules, employers must pay the $100,000 fee to accompany or supplement petitions for H-1B workers outside the US, with the Department of Homeland Security (DHS) restricting approvals for non-compliant cases for 12 months.
The State Department will verify payments during visa processing, and exceptions may apply if DHS deems a hire in the “national interest” – potentially waiving the fee for individuals, companies, or entire industries. The restriction expires in September 2026 unless extended, following an interagency review.
“This will bring in the best of the best, while protecting our workers from being undercut,” Trump said. His Commerce Secretary Howard Lutnick described the fee as an “annual” levy during the ceremony – a detail later clarified as a one-time payment.
The announcement triggered immediate turmoil. Tech giants including Microsoft, Amazon, and JPMorgan Chase urged H-1B holders abroad to return to the US before midnight, fearing a blanket entry ban.
India, home to many H-1B recipients, is going through a turmoil right now. The move has heightened anxieties for IT professionals.
White House Press Secretary Karoline Leavitt moved swiftly to quell the uproar on X, confirming the fee applies “only to new visas, not renewals, and not current visa holders.”
US Citizenship and Immigration Services (USCIS) echoed this in a memo, stressing the policy is prospective and spares the 700,000 existing H-1B holders – averting an estimated $63 billion annual burden on employers, per analyst Kobeissi Letter.
“H-1B visa holders can leave and re-enter the country to the same extent as they normally would,” Leavitt added.
