Contents

Background

On 19 September 2025, U.S. President Donald Trump signed a presidential proclamation introducing a $100, 000 fee on H-1B visa petitions.
This applies to petitions for workers outside the U.S. seeking entry under the H-1B specialty occupation visa.
The measure is justified by the administration as necessary to:
Curb “abuse” of the H-1B program.
Protect American jobs.
Ensure employers pay a premium only for rare or critical talent.
Duration: 12 months, with scope for renewal.
Authority: Implemented through DHS (Department of Homeland Security) and USCIS(U.S.Citizenship
and Immigration Services).

H-1B Visa: Definition

The H-1B visa is a non-immigrant work visa that allows U.S. employers to hire foreign professionals in“specialty occupations.”
Specialty occupations require theoretical or technical expertise in fields such as Information Technology (IT), engineering, mathematics, science, medicine, architecture, and finance.

Fee amount: USD 100, 000 per petition, in addition to existing USCIS filing fees.
Applicability:
Primarily for new petitions for foreign nationals outside the U.S.
Uncertainty remains over whether it will also apply to extensions/renewals for those already in the U.s
Exemptions:
Secretary of Homeland Security may grant “national interest” waivers.
Universities and non-profits might be treated differently (to be clarified in agency guidance).
Implementation: Effective from 21 September 2025 (subject to litigation and possible injunctions).

By law and USCIS practice, employers/petitioners — not employees — must bear the fling fees.
Therefore, U.S. companies sponsoring Indian professionals will absorb the cost (though they may renegotiate contracts).

Indians dominate the H-1B program:
71% of all H-1B approvals in FY2024 went to Indian nationals.
Indian IT/consulting firms are major petitioners and depend heavily on H-1B placements in the U.S.
Hence, the fee disproportionately impacts Indian workers and Indian companies.

Freeze on new entries: Many employers may stop hiring from abroad due to cost.
Cost escalation:
Example: An engineer on $120, 000 salary now costs an extra 83.3% ($100k/$120k) to sponsor.·
For 10 hires: Extra $1 million annually.

Startups & SMEs hit hardest: Smaller firms cannot afford sponsorship; big tech may selectively pay for critical hires.

Consultancies squeezed:
Typical biling at $60/hour ($120k annually) — must rise to $110/hour to absorb cost.
Business models of Indian IT services threatened.

Authority question: Critics argue the President lacks legal authority to impose such high fees without Congress.
Court challenges: Immigration lawyers expect lawsuits — injunctions possible.
Scope disputes:
Annual vs. one-time fee (per 3-year validity).
Applicability to renewals/extensions inside the U.S. remains unclear.
Congressional action: Lawmakers could intervene either to block or codify the measure

Reduced H-1B intake: Employers may pivot to remote/offshore work instead of bringing workers into the U.S.
Shift toward elite talent: Only very high-paid or critical roles may justify the fee.
Impact on U.S. innovation: Risk of losing foreign talent pipeline, especially in tech.
India-specific consequences;
Fewer Indians entering the U.S. workforce.
Disruption to Indian IT exporters’ business models.
Increased push toward Canada, Australia, and Europe as alternative destinations.

The $100, 000 H-1B fee is the biggest policy shock to the U.S. work visa regime in decades.
Indians (71% of H-1B holders) are the most affected.
If enforced strictly, it could shrink H-1B flows, restructure Indian IT exports, and push global talent away from the U.S.
Final impact depends on legal battles, agency guidance, and political responses in the coming months.