The lives of H-1B visa holders, particularly those from India and China, have been thrown into turmoil following the latest crackdown by the Trump administration. A new proclamation, effective September 21, 2025, imposes a hefty $100,000 fee on employers for each new H-1B visa. This move has triggered widespread panic and confusion, forcing many to make difficult choices between their careers and personal lives.
The immediate impact of the announcement was chaos. Numerous tech companies and banks, including Microsoft, Google, Amazon, and JPMorgan, sent urgent memos to their employees, advising them to return to the U.S. immediately or risk being stranded. This led to a scramble at airports as H-1B holders cut short vacations, family visits, and international conferences to rush back to the United States.
The proclamation's stated goal is to protect American workers and ensure that H-1B visa holders possess specialized skills that cannot be easily found within the U.S. workforce. The Trump administration has long argued that the H-1B program has been exploited by companies to replace American workers with lower-paid foreign labor. By increasing the cost of H-1B visas, the administration aims to discourage companies from outsourcing jobs and to incentivize the hiring of American workers.
However, the sudden implementation of the $100,000 fee has been met with strong criticism and has raised numerous concerns. India's Ministry of External Affairs expressed serious concern, stating that the move could cause "potential disruptions for families" and have "humanitarian consequences". Experts warn that the high fee could drive skilled professionals away from the U.S., negatively impacting Silicon Valley and other tech hubs that rely on global talent.
The new rule does not apply to H-1B visa holders already in the U.S. or those seeking renewals. It primarily targets new visa applicants who are outside the country. There are exceptions to the fee, such as cases where the Secretary of Homeland Security grants a "national interest" exemption. The proclamation also directs government agencies to make broader changes to the H-1B system, including raising prevailing wage levels and prioritizing higher-paid, highly skilled foreign workers in the H-1B lottery process.
For those already in the U.S. on an H-1B visa, job loss remains a significant concern. The U.S. tech industry has experienced considerable layoffs in recent years, impacting many H-1B visa holders. If an H-1B worker loses their job, they typically have a 60-day grace period to find new employment or change their visa status. During this period, they can seek new employment, transfer their H-1B status to a new employer, or apply for an alternative visa type. Some may even consider self-employment options under new regulations.
The future of the H-1B visa program remains uncertain. Legal challenges to the new proclamation are expected. Some analysts suggest that the increased costs may force companies to move high-value work overseas, potentially harming the U.S.'s competitiveness in the technology sector. Others believe that it could lead to a "talent renaissance" in India, as more skilled workers choose to return home and contribute to the growth of India's own technology sector.
