Trump’s $100,000 H-1B Visa Fee Hike: Boost for India’s Tech Sector or Blow to U.S. Innovation?

WASHINGTON/NEW DELHI, 21 September, 2025 - President Donald Trump has imposed a $100,000 annual fee on new H-1B visa applications, effective today, September 21, 2025, at 12:01 a.m. ET. Signed via executive proclamation on Friday, the policy applies only to fresh petitions, sparing current visa holders, but it is already set to reshape the global flow of skilled professionals particularly from India, which accounts for over 70 percent of H-1B approvals.

The H-1B visa, a nonimmigrant work permit for skilled workers in fields like technology, engineering, and medicine, allows U.S. companies to hire specialists for up to six years. Each year, 85,000 visas are awarded through a lottery. The Trump administration frames the new fee as a safeguard against program abuse, claiming outsourcing firms replace U.S. workers with lower-paid foreigners, posing what the president calls a “national security threat.”

Why the Hike? Balancing Jobs and Costs

White House staff secretary Will Scharf said the H1B non-immigrant visa program is one of the 'most abused visa' systems in the country's current immigration system, and it is supposed to allow highly skilled laborers, who work in fields that Americans don't work in, to come into the United States.

Current filing fees, ranging from $1,700 to $8,000 depending on employer size, are dwarfed by the new $100,000 mandate. Over a visa’s six-year duration, companies could pay up to $200,000 per worker.

Exemptions are limited to national interest cases, and the policy is valid for 12 months unless renewed.

Critics warn of long-term harm. U.S. Congressman Raja Krishnamoorthi called the move “reckless and unfortunate,” arguing it will stifle the influx of skilled immigrants who drive economic growth.

Impact on U.S. Tech and Healthcare

The policy lands hardest on technology and healthcare, two sectors already facing labor shortages.

• Tech firms: In fiscal year 2025, Amazon led with over 10,000 H-1B approvals, followed by Tata Consultancy Services (5,505), Microsoft (5,189), Meta (5,123), and Google (4,181), as per Hindustan Times.

• Healthcare: About 30 percent of U.S. medical residents are international graduates. Nearly 10,000 of the 43,000 residency slots are filled by H-1B doctors, who typically earn around $55,000 annually. Hospitals may hesitate to shoulder such steep fees, raising concerns of worsening staffing shortages. Experts like @VVipinpatel on X have called this “devastating” for critical care.

Companies are already advising visa holders to avoid international travel to reduce reentry risks. Flight prices from New Delhi to New York surged from ₹37,000 to ₹70,000–80,000 for one-way tickets.

Reactions on X: Hope and Frustration

The policy has sparked sharp reactions on social media.

• Kunal Bahl, co-founder of Snapdeal, struck an optimistic note on X, reminding professionals that setbacks can open unexpected doors.

• Zakka Jacob, Managing Editor at CNN-News18, highlighted the downside on X, warning that the $100,000 H-1B fee could discourage companies from hiring top foreign talent.

India’s Potential Gain

India could stand to benefit significantly. Returning professionals may strengthen tech hubs such as Bengaluru, Hyderabad, and Pune.

Former NITI Aayog CEO Amitabh Kant said Trump’s move would “choke U.S. innovation and turbocharge India’s,” adding that the next wave of labs, patents, and startups could shift to India.

The Indian government has launched an emergency helpline (+1-202-550-9931) for affected workers and raised concerns about “humanitarian consequences” such as family separations, spokesperson Randhir Jaiswal told the Hindustan Times.

White House Press Secretary Karoline Leavitt clarified: “Those who already hold H-1B visas and are currently outside of the country right now will NOT be charged $100,000 to re-enter.”

(Rh/Eth/VK)