Geeta Singh
The United States has introduced a dramatic change to its H-1B visa programme, imposing a one-time fee of $100,000 for new applications. The move, which took effect on 21 September 2025, marks a steep rise from the previous cost and is expected to have far-reaching consequences for Indian IT firms, skilled professionals, and global talent mobility.
The U.S. has instituted a sweeping change to its H-1B visa programme, a move that has sent shockwaves through the global technology sector and particularly impacted Indian professionals. A new presidential proclamation imposes a one-time fee of $100,000 for all new H-1B visa applications — a staggering increase from the previous cost of $4,500. This change takes effect on 21 September and will last for 12 months unless extended. The move is expected to significantly impact Indian IT firms, as they file the majority of H-1B petitions. Indians constitute 71% of all approved H-1B applications, with China as the next largest group.
Tech companies rely heavily on H-1B visas to hire skilled workers, and international students use them to transition from study to work in the U.S. While the White House later clarified that the fee is not annual and does not apply to existing visa holders or renewals, the policy is expected to drastically reshape international talent mobility. The proclamation, titled “Restriction on Entry of Certain Nonimmigrant Workers,” took effect on 21 September 2025.
The White House clarified that the new $100,000 fee applies only to new visa applications and is a one-time payment, not an annual charge. This announcement came after President Trump signed an executive order significantly raising the fee from the previous $2,000–$5,000 range. The order aims to ensure that only highly skilled workers are sponsored by companies. Existing H-1B visa holders, including those currently outside the U.S., will not be affected by the fee increase and can continue to travel as usual.
Confusion and Panic Among Indian Professionals
The move has caused concern among Indian IT professionals, immigration lawyers, and U.S. companies, some of which asked employees abroad to return quickly. The U.S. Chamber of Commerce expressed worries about the impact on workers and families and is working with the administration to evaluate the changes. The White House press secretary later reiterated that the fee applies only to new petitions in the upcoming visa lottery cycle. Current visa holders, including those travelling abroad, will not be affected and can re-enter the U.S. without paying the new charge.
While this clarification brought relief, it does not erase the long-term consequences of such a steep barrier to new applicants.
The announcement sparked widespread confusion and panic, particularly among Indian professionals who account for more than 70% of H-1B visa holders. Reports surfaced of tech companies urging employees to cancel international travel or rush back to the U.S. before the new rule took effect, fearing they would be charged the new fee upon re-entry.
Indian Tech Industry Braces for Disruption
With the new $100,000 fee, the economics of hiring foreign talent have been upended, sparking fears of lay-offs, relocations, and a potential reverse migration back to India. India’s IT industry, one of the largest users of the H-1B programme, is preparing for significant disruption. Nasscom, India’s top tech industry body, warned that the move could unsettle thousands of skilled professionals and disrupt projects reliant on onshore workers. The group also criticised the sudden implementation, which left no transition time for businesses or employees.
Despite the challenges, some experts see opportunity. India has long struggled with “brain drain”, losing top talent to the U.S. With the H-1B pathway now less accessible, many professionals may choose to stay in India. This could fuel domestic innovation and accelerate growth in emerging fields like AI, robotics, and deep tech, strengthening India’s start-up ecosystem.
India has long struggled with “brain drain”, losing top talent to the U.S. With the H-1B pathway now less accessible, many professionals may choose to stay in India. This could fuel domestic innovation and accelerate growth in emerging fields like AI, robotics, and deep tech, strengthening India’s start-up ecosystem.
A ‘Pay-to-Play’ System
In the U.S. and beyond, the policy has drawn sharp criticism. Immigration lawyers and business leaders argue that the new fee transforms the H-1B into an elitist “pay-to-play” system. They warn it will discourage top talent from applying and disadvantage smaller companies, start-ups, and non-profits unable to afford the cost.
Legal challenges are also expected, with critics questioning whether such a drastic fee increase can be imposed by executive proclamation without congressional approval.
India’s Diplomatic Response
The Indian government has responded cautiously but firmly. The Ministry of External Affairs is assessing the policy’s implications and has warned of “humanitarian consequences”, particularly for families. Indian missions abroad have been instructed to provide assistance to nationals impacted by the change.
What This Means for the Future of Global Talent Mobility
The $100,000 H-1B fee represents more than a policy shift. It reflects a deeper tension between protectionism and openness in the global workforce. While the U.S. seeks to safeguard domestic jobs, it risks pushing talent and innovation to other markets. For India, however, the disruption may serve as a catalyst for retaining talent and building self-sustaining innovation hubs. In the end, the measure could reshape not only immigration policy but also the future geography of global innovation.
