The recent announcement of a $100,000 fee on H-1B visas by the U.S. government has triggered widespread apprehension and disruption among Indian professionals in the United States. The sudden policy shift, effective September 21, 2025, has prompted many to reconsider or cancel their travel plans, creating a state of uncertainty for those holding H-1B visas.
The primary cause for alarm stems from the lack of clarity surrounding the implementation of the new rule. While the U.S. government has clarified that the fee applies to fresh H-1B petitions, the ambiguity has led many to believe that anyone traveling outside the U.S. might face hurdles upon reentry. This has resulted in many H-1B holders cancelling Diwali travel and wedding plans.
Several technology companies, including Microsoft and Amazon, have reportedly advised their H-1B employees and their dependents to postpone international travel and remain in the U.S. to avoid potential re-entry complications. This has further fueled the concerns and prompted many to adopt a "wait and watch" approach.
The impact of this policy extends beyond individual travel plans. Experts believe that this will have immediate and long-term consequences for the Indian IT industry. In the short term, companies with Indian workers in the U.S. may need to reassess their plans or bear the burden of the hefty fee. The long-term effects could include a restructuring of the outsourcing model, with more work being shifted back to India and a recalibration of the industry's reliance on on-site roles.
The move has been criticized for potentially harming America's innovation ecosystem and disrupting business continuity for onshore projects. Some experts suggest that it could lead to job losses for H-1B visa holders in the U.S., creating a challenging situation for them.
Despite the anxiety, some industry insiders remain confident that the Indian IT sector will find ways to navigate this crisis. However, the immediate impact has been significant, with widespread panic and confusion gripping the Indian H-1B community in the U.S.
The situation remains fluid, and further clarifications from the U.S. government are needed to ease the concerns and provide a clear path forward for H-1B visa holders. Until then, many Indian professionals are likely to remain in a state of red alert, carefully weighing their options and avoiding any non-essential travel.
