Amidst the recent announcement by former U.S. President Donald Trump to impose a hefty $100,000 annual fee on H-1B visas, Indian political circles are heating up. The move, which is expected to significantly impact Indian tech professionals, has drawn sharp criticism from opposition leaders, with Rahul Gandhi leading the charge by calling Prime Minister Narendra Modi a "weak PM".
Trump signed the proclamation on Friday, introducing the substantial fee for companies seeking to sponsor H-1B worker visas. The administration also plans to launch a "gold card" visa for individuals who can afford to pay $1 million for US permanent residency. Commerce Secretary Howard Lutnick said that "all the big companies" were briefed on the new fee. Lutnick stated that the $100,000 fee would deter companies from using the program to bring in entry-level employees and incentivize employers to recruit "the great engineers" and "impressively detailed executives".
The H-1B visa program allows U.S. companies to employ foreign workers with specialized skills, typically in science and technology, when they cannot find qualified American workers. Tech companies are major beneficiaries, but employers in other sectors like manufacturing, finance, education, retail, and healthcare also utilize the program.
Rahul Gandhi swiftly responded to the development byresharing an old post on X (formerly Twitter) from 2019, where he had used the same "weak PM" jibe. In his recent post, Gandhi shared a news report highlighting the impact of the H-1B visa fee hike on Indian workers, who constitute a significant portion of H-1B visa holders. "I repeat, India has a weak PM," he wrote.
Other Congress leaders have also criticized PM Modi, describing him as a "weak" leader whose "strategic silence" has become a liability. Congress President Mallikarjun Kharge called the visa hike one of the "return gifts" Modi received after his birthday call with Trump. Kharge listed several moves perceived as detrimental to Indian interests and said, "Indian national interests are supreme... Foreign policy is about safeguarding national interests, keeping India first, and steering friendships with wisdom and balance".
The Trump administration defended the fee hike as a measure to curb "systemic abuse" of the H-1B program. They argue that the program has been used to replace American workers with lower-paid foreign labor. The new rules require employers to show proof of payment of the $100,000 fee when filing H-1B petitions.
Critics of the H-1B program have long alleged that companies exploit it to pay lower wages and weaken labor protections. Supporters say it attracts top talent to the U.S., boosting its competitive edge. Deedy Das, a partner at Menlo Ventures, said on X that the new fees would disincentivize attracting the world's smartest talent and reduce the U.S.'s ability to innovate and grow.
The move is expected to disproportionately affect Indian IT professionals, who make up a large percentage of H-1B visa holders. According to DHS data, over 70% of H-1B visa holders in the 2024 fiscal year were born in India.
The increased costs, on top of existing H-1B fees ranging from $1,700 to $4,500, could significantly burden companies, especially smaller tech firms and startups. Some experts believe the $100,000 fee could devastate several industries by significantly prohibiting the hiring of foreign talent. Aaron Reichlin-Melnick, a senior fellow at the American Immigration Council, questioned the legal authority to impose such a fee, stating that the executive branch can only charge fees to recover application processing costs.
