Syed Akbaruddin, India's former Permanent Representative to the United Nations, has strongly criticized the recent US decision to significantly increase H-1B visa fees, calling it "a $100,000 toll on talent". He argues that this steep hike, which raises the cost of new H-1B visa applications to $100,000, is akin to a "tax on trust" that undermines the mutual benefits of the program and risks eroding goodwill between India and the United States.
Akbaruddin's criticism comes in response to the proclamation signed last Friday that dramatically increases the application fee for companies hiring employees on H-1B visas. The H-1B visa is a crucial mechanism for US firms to bring in workers with specialized skills from around the world, particularly in technology, engineering, medicine, and academia. Previously, the fee ranged from $2,000 to $5,000, depending on the size of the company. The White House has clarified that the new, higher fee applies only to new applications and is a one-time charge. The new fee requirement applies only to individuals or companies filing new H-1B petitions or entering the lottery system after September 21. Current visa holders and petitions submitted before that date remain unaffected.
Akbaruddin likened the fee hike to a barrier on a "bridge of talent," arguing that taxing skilled migration harms both nations and could drive opportunities elsewhere. He emphasized that the H-1B visa program has historically been a "win-win" situation for both the US and India. Indian engineers have seen it as a pathway to global careers, while American firms have relied on it to access skills they cannot always find domestically. He cautioned that viewing the H-1B visa as a "loophole" rather than a "ladder" is detrimental and that "taxing talent is a race we will both lose".
The former UN representative also suggested leveraging India's Global Capability Centers (GCCs) as a "home-shoring solution" to counter the challenges posed by the visa changes. He predicts that GCCs could absorb returning talent and boost exports and that if the US doesn't allow talent to go out, work will come inside, and talent will migrate to India. He urged India to see this not as a loss but as a need to recalibrate and seize the immediate threat, as the new rules will only apply from the next review.
The US decision has triggered widespread concern, particularly within the tech industry and among healthcare groups. Silicon Valley companies have warned employees against traveling abroad, and foreign workers have rushed to book return flights. The American Medical Association (AMA) warned that fees as high as $100,000 could choke off the international physician pipeline, potentially worsening the existing doctor shortage in the US. Hospital and doctor groups have cautioned that the fee increase could sharply reduce the number of foreign-trained doctors entering the US system, straining already thin hospital staffing.
Economists have also warned that the H-1B visa fee hike could hurt US economic growth. Making it expensive for companies to attract foreign talent could lead to a "brain drain" and weigh heavily on productivity. Some experts suggest that Canada could benefit from the US policy change, potentially attracting highly skilled workers who may now seek opportunities elsewhere.
India remains the largest beneficiary of H-1B visas, accounting for 71% of approved applications last year. The Indian government has hit back at the new fee, warning it would have "humanitarian consequences" and cause "disruption caused for families". The $283 billion Indian IT sector, which earns a significant portion of its revenue from the United States, is expected to be significantly impacted. The move may reduce onshore rotations in the IT sector, prompting companies to pause onshore rotations, accelerate offshore delivery, and ramp up hiring of US citizens.
