India has voiced strong concerns over the Trump administration's decision to significantly increase H-1B visa fees, warning of potential disruptions for families and the Indian IT sector. The Ministry of External Affairs (MEA) stated that the new $100,000 annual fee could have "humanitarian consequences" due to the disruption it may cause to families. The MEA is currently studying the full implications of the measure and hopes the U.S. authorities will address these potential disruptions.
Effective September 21, 2025, the new fee marks a significant increase from the previous range of $2,000 to $5,000, depending on the employer size and other related costs. The abrupt implementation of this policy, with only a one-day window for compliance, has raised concerns among businesses, professionals, and students.
Nasscom, India's leading IT industry body, has expressed alarm, stating that the fee hike could disrupt the global operations of Indian technology service companies and unsettle skilled professionals working in the U.S.. They also emphasized that such significant policy changes should be introduced with adequate transition periods to minimize disruption. Nasscom is closely monitoring the situation and engaging with stakeholders to seek clarity on the matter.
The Trump administration defends the fee hike as a measure to ensure that companies only sponsor highly skilled workers and to curb program abuse. U.S. officials claim the change to the H-1B program will ensure companies sponsor workers with the most rarefied skill sets. President Trump stated that the fee hike would ensure that those entering the country are "actually very highly skilled" and do not replace American workers. The White House staff secretary, Will Scharf, stated that the H-1B non-immigrant visa program is one of the “most abused visa” systems in the country's current immigration system and that the move is aimed at protecting American workers.
However, critics argue that the increased fee could force companies to move high-value work overseas and negatively impact the U.S.'s competitiveness, particularly in the artificial intelligence sector. Some analysts suggest the fee may force companies to move some high-value work overseas, hampering the US's position in the high-stakes artificial intelligence race with China. Tech entrepreneurs, including Elon Musk, have warned against targeting H-1B visas, arguing that the U.S. lacks sufficient domestic talent to fill critical tech sector vacancies.
The H-1B visa program is crucial for U.S. companies to hire foreign workers in specialized fields such as science, technology, engineering, and mathematics (STEM). India accounts for a significant proportion of H-1B visa holders, with around 71% of the total. This move is expected to disproportionately affect Indian IT professionals and companies that rely on the H-1B visa program.
The fee hike has prompted major U.S. tech firms like Microsoft, JPMorgan, and Amazon to advise employees holding H-1B visas to remain in the U.S.. Microsoft reportedly issued an internal advisory urging H-1B employees and dependents to avoid travel abroad and return before the September 21 deadline. Immigration attorneys and companies are also advising H-1B holders and their families currently outside the U.S. to return immediately to avoid potential complications.
Some experts warn that the steep fee increase may drive skilled professionals away from the U.S., potentially impacting Silicon Valley and other tech hubs that rely on global talent. Congressman Raja Krishnamoorthi called the move a "reckless attempt to cut America off from high-skilled workers who fuelled innovation and helped build industries employing millions of Americans".
