Washington DC: In a major shake-up of the US immigration landscape, a recently signed executive order by President Donald Trump has introduced a hefty $100,000 annual fee for employers sponsoring workers under the H-1B visa program — a move that could significantly curb the hiring of foreign talent, particularly from India.
The H-1B visa, long considered a gateway for highly skilled foreign professionals to enter the American workforce, may now become far less accessible due to the financial burden placed on employers. The new policy marks a substantial departure from previous regulations, where application fees were a fraction of the new cost.
What Is the H-1B Visa?
The H-1B visa enables U.S.-based companies to hire foreign nationals for specialized roles that typically require a degree in fields such as engineering, IT, science, and mathematics. For decades, it has been a crucial channel through which the American tech industry filled critical talent shortages, with Indian professionals representing the overwhelming majority of recipients.
According to data from U.S. Citizenship and Immigration Services (USCIS), nearly three out of four approved H-1B applications in recent years were granted to Indian nationals, many of whom work for major global IT firms or U.S.-based startups.
A Drastic Policy Shift
In a proclamation announced late last week, the Trump administration cited longstanding concerns over alleged misuse of the H-1B system, claiming that it has often been used to bring in workers at lower wages, displacing American talent.
“This reform will realign the H-1B program with its original intent — to bring in only the highest-skilled professionals where no equivalent exists in the domestic labor market,” said White House staff secretary Will Scharf during the announcement. “We’re closing the loopholes and stopping the abuse.”
Under the new directive, companies must pay $100,000 each year per H-1B worker, a stark contrast to the previous average cost of around $1,500 in filing and administrative fees. The payment must be verified at the time of application, and failure to comply will result in immediate rejection.
Impact on Employers and the Tech Industry
The move has sparked alarm among U.S. businesses, especially those in the tech and consulting sectors, who argue that the new policy could throttle access to critical talent pipelines.
For large multinational corporations, the fee may be absorbed as part of operational costs. But for smaller firms, startups, and mid-sized enterprises, the financial hit could be prohibitive.
“This isn’t just about dollars — it’s about competitiveness,” said an immigration policy analyst at the Brookings Institution. “Startups trying to scale innovative products often rely on global talent. This fee could effectively shut the door on them.”
Indian Workers Likely to Bear the Brunt
With Indians constituting over 70% of H-1B visa holders, the new regulation is expected to disproportionately affect them. Many Indian professionals in the U.S. tech sector — including recent graduates from American universities on student visas — now face greater uncertainty about securing long-term employment.
Indian IT giants such as Infosys, Wipro, and Tata Consultancy Services (TCS), which place thousands of workers at U.S. client sites each year, are also expected to reassess their workforce strategies in light of the steep cost increase.
In 2023, the BBC reported that around 65% of Indian H-1B visa holders were employed in computer-related fields, earning a median salary of approximately $118,000 annually. However, with the new fee essentially adding a 90% surcharge to that cost, companies may hesitate before offering new sponsorships.
A New Era of Scrutiny
The administration insists the change is aimed at ensuring companies make a compelling case for hiring from abroad — one that includes proof that no equally qualified American worker is available. Critics, however, argue that the move is less about reform and more about restriction.
Immigration attorneys have already raised concerns that the fee could create legal challenges for companies with ongoing H-1B applications or extensions in progress. Meanwhile, labor and industry groups are lobbying for revisions or exemptions, especially for sectors with proven skill shortages.
What’s Next?
While the new policy is slated to take effect in the next visa cycle, it could face court challenges or political opposition. Legal experts say the rule might be contested on grounds of its economic impact or its disproportionate effect on certain nationalities.
In the meantime, employers are re-evaluating their hiring plans, and thousands of hopeful foreign professionals are left wondering whether their American dream is still attainable.
