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H1 Visa Fee Hike: After months of speculation, US President Donald Trump has finally moved to curb the H-1B visa for skilled workers. The programme has long been a favourite among Indian techies chasing better opportunities and big bucks in America. Immigration attorney Charles Kuck called the move “an intentionally devastating blow” to Indian IT firms that file most H-1B petitions.
On Friday, Trump signed an executive order announcing that companies will have to pay the government $100,000 (about Rs 90 lakh) for each H-1B visa. Until now, the fee was $4,500 (around Rs 400,000).
The new rule takes effect on September 21 and will last for 12 months, unless extended.
Why the H-1B visa fee hike matters
Indians make up 71 per cent of all approved H-1B applications in recent years, according to US Citizenship and Immigration Services (USCIS). China is the next biggest group.
Tech companies, from startups to global giants, rely on this visa to hire skilled workers. Many international students also count on it to move from short-term study to long-term careers in the US.
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If enforced, the new fee could:
• Sharply increase hiring costs for US employers
• Disrupt recruitment and workforce planning
• Push global talent towards other destinations
Impact of H-1B visa changes on Indians
With Indians forming more than 70 per cent of H-1B holders, the impact is expected to fall hardest on them.
“For thousands of Indian tech workers, the proposed fee, if enacted, will likely not force immediate returns but will limit job mobility and make renewals costly,” said Sophie Alcorn, an immigration lawyer in Silicon Valley.
“Employers may hesitate to sponsor or retain H-1B employees, especially early-career professionals, increasing the risk that some will have to go back to India or be attracted to other countries such as Canada, the UK, the UAE, and Saudi Arabia,” she added.
5 key takeaways of H1 Visa:
Cost Surge: Sponsoring 10 H-1B workers could add $1M in annual expenses.
HR Adjustments: Companies must revise budgets, raise pay, and handle tighter compliance.
Talent Drain: Global talent may avoid the US, worsening STEM labor shortages and reducing diversity.
Innovation Risk: Tech and other sectors could see slower growth without international expertise.
Strategy Shifts: Firms may turn to automation, offshoring, or domestic upskilling to cope.
Immigrants need to watch out for:
A $100K H-1B fee could shut out early-career STEM workers, recent grads, and OPT students, limiting opportunities to only senior or critical roles.
Existing H-1Bs remain valid, but future extensions, transfers, or renewals may face the new rules.
Employers and talent are exploring options like O-1 and EB-1A visas, which bypass the lottery and can lead directly to permanent residency.
Demand for EB-1A petitions has grown, with more HR leaders considering non-H-1B routes for top talent.
The $100K fee may face court challenges, as visa fees usually require legislation or formal rulemaking.
Big Picture: If enacted, this would be one of the most significant shifts in U.S. immigration policy, reshaping hiring, limiting skilled immigration, and affecting competitiveness.
Next Steps: Employers and workers should monitor policy updates and consult immigration attorneys for options.
Legal challenges to Trump’s H-1B executive order
Immigration attorney Charles Kuck, founding partner at Kuck Baxter Immigration in Atlanta, said Trump lacks the legal authority to impose such a fee.
“The President cannot impose it for a variety of reasons, but all going back to the basic fact that only Congress can authorise fees,” said Kuck.
“Employers and workers are working on a suit now and we believe there’s an excellent chance that a court could block the order through an injunction,” he said.
He noted that visa fees are supposed to cover processing costs, not create barriers. “Even universities, research roles, or national interest cases are not going to be exempted,” Kuck added.
What H-1B visa holders should do now after H-1B Visa Fee Hike
Lawyers are advising caution.
“Indian professionals already in the US on H-1B renewals are unlikely to be affected unless they need to travel,” said Kuck.
“We strongly advise all clients currently on an H-1B visa to remain within the United States until further notice. If you are currently outside the US, we recommend making arrangements to return as soon as possible. This is a precautionary measure to help avoid potential complications,” said Alcorn.
Microsoft issues H-1B visa guidance
According to Atal Agarwal, an Indian techie in San Francisco, Microsoft has issued internal guidance to employees on how to respond.
If in the US: “Remain in the U.S. for the foreseeable future” to “avoid being denied reentry”
H-4 dependents: Advised to also stay in the US, even though the proclamation does not mention them
If abroad: “Strongly recommend you return to the U.S. tomorrow before the deadline”
Extensions or status changes: Likely unaffected if the employee is already in the US
Microsoft has also set up individual tracking for employees outside the country and admitted “there isn’t much time to make sudden travel arrangements,” Agarwal shared in a post on X (formerly Twitter).
US government’s stand on H-1B visa crackdown
US commerce secretary Howard Lutnick told reporters the move would push firms to hire more Americans. He said it would also send “less valuable foreign workers back to their home countries.”
Trump accused IT outsourcing firms of “systemic abuse” of the H-1B programme and called it a “national security threat.”
“Further, the abuse of the H-1B visa programme has made it even more challenging for college graduates trying to find IT jobs, allowing employers to hire foreign workers at a significant discount to American workers,” his proclamation reads.
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