The Trump administration has announced a plan to impose a hefty $100,000 annual fee on H-1B visa applications, a move that is expected to significantly impact Indian tech workers and the US technology sector. This policy change, revealed on September 19, 2025, marks one of the most substantial alterations to the skilled worker program in recent history.

Impact on India

India stands to be heavily affected by this new fee structure, as Indian nationals constitute the largest proportion of H-1B visa holders. Government data indicates that India accounted for 71% of approved H-1B beneficiaries last year, while China was a distant second at 11.7%. The increased cost could deter Indian professionals, particularly those in mid-level or entry-level positions, from seeking opportunities in the United States.

For Indian students and recent graduates, the H-1B fee changes may translate into fewer job prospects and limited opportunities to remain in the US after completing their studies. Experts suggest that this could lead to a shift in talent, with skilled Indian workers potentially seeking opportunities in countries like Canada, the UK, the UAE, and Saudi Arabia.

Why the US Isn't Immune

While the Trump administration argues that the fee will protect American jobs and prevent program abuse, critics fear it could backfire and harm the US economy. The tech industry, which heavily relies on H-1B visa holders, may face significant challenges.

• Increased Costs: The $100,000 annual fee could substantially increase costs for companies, especially smaller tech firms and startups. A company sponsoring ten H-1B workers annually could face an additional $1 million in expenses.
• Deterring Talent: The fee might discourage global talent from coming to the US, potentially reducing the country's ability to innovate and grow its economy. Deedy Das, a partner at Menlo Ventures, noted that the new fees create a disincentive to attract the world's smartest talent to the US.
• Reduced Competitiveness: Some analysts suggest the fee may force companies to move some high-value work overseas, hampering America's position in the artificial intelligence race with China. Xiao Wang, CEO of Boundless, warned that such a steep fee could effectively turn the H-1B into a "luxury work permit" accessible only to the wealthiest corporations and workers and weaken the United States' standing as a global innovation leader.
• Labor Shortages and Reduced Diversity: International talent may seek employment elsewhere, creating labor shortages and reducing diversity in the US workforce.
• Discouraging STEM careers: Some experts suggest that H-1B visa programs can place American companies at a competitive disadvantage, and discourage American students from pursuing STEM careers.

The H-1B visa program has long been a pathway for skilled foreign professionals to contribute to the US economy, filling critical roles in technology, healthcare, engineering, and finance. H-1B workers complement U.S. workers, fill employment gaps in many STEM occupations, and expand job opportunities for all. A study by the National Foundation for American Policy (NFAP) found that for every H-1B visa position requested by an employer, an average of 7.5 additional jobs are created in the U.S. Prominent figures like Elon Musk have also voiced their support for the H-1B visa program, emphasizing that it brings in highly skilled workers who are essential to filling talent gaps and keeping firms competitive.

The Trump administration's move is expected to face legal and political challenges, particularly regarding the president's authority to impose such fees without congressional legislation. It remains to be seen whether this policy will achieve its intended goals or inadvertently harm the US economy and its ability to attract top global talent.