India has voiced strong concerns over the United States' new policy imposing a $100,000 fee for H-1B visa applicants, warning of potential "humanitarian consequences" due to disruptions to families. The H-1B visa is a non-immigrant visa that allows U.S. employers to temporarily employ foreign workers in specialty occupations that require theoretical or technical expertise.
Key Points of the Situation:
The New Fee: On Friday, September 19, 2025, former U.S. President Donald Trump signed a proclamation imposing a $100,000 annual fee on H-1B visa applications. This represents a significant increase from the previous fee, which ranged from $2,000 to $5,000 depending on the size of the employer and other charges.
India's Response: India's Ministry of External Affairs (MEA) stated that the new measure is likely to have "humanitarian consequences by way of the disruption caused for families". The MEA hopes that these disruptions will be addressed suitably by U.S. authorities and that the two countries can consult on the best path forward.
Clarification from the White House: Following the announcement, the White House Press Secretary clarified that the $100,000 fee is a one-time fee that applies only to new visas in the next lottery cycle, not to renewals or current visa holders.
Impact on Indian Professionals: Indians account for a significant number of H-1B visa holders, with estimates suggesting they comprise approximately 71% of approved beneficiaries. The new fee is expected to disproportionately affect Indian IT professionals and technology companies that rely on these visas.
NASSCOM's Concerns: India's leading trade body, NASSCOM, expressed concerns about the abrupt implementation timeline for the H-1B visa fee, stating that it would affect Indian nationals and disrupt the continuity of ongoing onshore projects for the country's technology services firms.
Potential Consequences and Concerns:
Disruption for Families: The Indian government is particularly concerned about the potential disruption to families due to the new visa fee. The increased cost could make it difficult for families to reunite or remain together in the U.S.
Impact on IT Companies: Indian IT giants like TCS, Infosys, and Wipro heavily rely on H-1B visas. The new fee could cost these companies billions of dollars and may lead to reduced hiring or a shift in jobs back to India.
Competitiveness of the U.S. Tech Sector: Experts warn that the steep fee hike may drive skilled professionals away from the U.S., potentially impacting Silicon Valley and other tech hubs reliant on global talent.
Abuse of the Program: U.S. officials have stated that the change to the H-1B program would ensure that companies only sponsor workers with the most rarefied skill sets. Critics of the H-1B program have long argued that companies have abused the program by using it to pay lower wages and impose fewer labor protections.
Reactions and Actions:
Some U.S. tech companies, including Amazon, Microsoft, and JP Morgan, reportedly advised employees with H-1B visas to stay in the U.S. or return immediately if they were out of the country.
The Indian government is in discussions with the U.S. administration and the IT industry to find a way forward.
White House officials have clarified that the fee is a one-time charge applicable to new visas only.
The situation remains fluid, and the full implications of the new H-1B visa fee are still being assessed. The Indian government has emphasized that both countries have a stake in innovation and creativity and has expressed hope that the U.S. authorities will address the disruptions caused by the new policy.
