Trump Signals Doctor Exemption from $100,000 H-1B Visa Fee Amid Rural Healthcare Crisis

Washington, D.C. – September 23, 2025 – The Trump administration announced on Monday that physicians and medical residents could be eligible for an exemption from the new $100,000 H-1B visa fee, responding to concerns from major medical organizations over growing doctor shortages in rural areas. President Donald Trump implemented the fee through an executive order on September 19, effective for new petitions filed after September 21. The measure aims to prioritize highly skilled workers while addressing wage suppression issues associated with foreign labor.

White House Responds to Healthcare Industry Concerns

White House spokesperson Taylor Rogers told Bloomberg News that the executive order permits exemptions when the Secretary of Homeland Security identifies hires critical to national priorities. "Physicians and medical residents may qualify for waivers," Rogers confirmed. This follows objections from the American Medical Association (AMA) and other organizations, which cautioned that the fee could restrict healthcare access in underserved regions.

AMA President Bobby Mukkamala, a Michigan-based head and neck surgeon, stressed the fee’s potential to “block the flow of international medical graduates essential to our workforce,” particularly in remote communities. Research from the Kaiser Family Foundation indicates that over 76 million Americans reside in regions with insufficient primary care doctors, where H-1B visa holders play a crucial role.

Hospitals and the H-1B Program

Medical institutions depend on the H-1B program to staff specialist positions that are difficult to fill. Leading sponsors such as Mayo Clinic, Cleveland Clinic, and St. Jude Children’s Research Hospital hold hundreds of visas, Mayo alone has over 300, according to U.S. Citizenship and Immigration Services (USCIS) data.

According to federal data compiled by health research group KFF, The initial policy proposal was a cause of concern as more than 76 million Americans live in areas where the government has designated a shortage of primary care doctors.

H-1B Fee Hike Targets IT and Global Talent

The executive order replaces the previous $215 fee with a one-time $100,000 charge, while exempting renewals and petitions filed before September 21. Commerce Secretary Howard Lutnick described the policy as a “necessary reform” to reduce reliance on low-wage foreign workers and generate over $100 billion for the U.S. Treasury to reduce debt and taxes. The reform primarily targets IT companies, which Trump claims misuse H-1B visas to depress wages for American tech workers, as outlined in a White House memo.

India, accounting for 71% of 2024 H-1B recipients, faces major repercussions. Nasscom, India’s IT industry association, forecasts that firms like Infosys, Wipro, and Tata Consultancy Services may increasingly hire locally in the U.S. to mitigate costs. With visas lasting up to six years and green card delays spanning decades, Indian professionals may encounter fewer opportunities. Following the announcement, U.S. tech stocks, including Indian companies, declined 2-5%, according to Reuters, reflecting concerns over reduced innovation.

(Rh/Eth/VK/MSM)