U.S H-1B visa overhaul: Trump hikes USD 100,000 Fee on H-1B Visas; how this affects Indians

President Donald J. Trump signed a proclamation titled “Restriction on Entry of Certain Nonimmigrant Workers” on Friday imposing a steep USD100,000 fee on H-1B visa petitions. The policy, effective at 12:01 a.m. Eastern Daylight Time on September 21, 2025, requires employers to pay the fee for each H-1B specialty occupation worker petition, with the restriction set to expire after 12 months unless extended.As per the proclamation, the H-1B program—intended to bring in high-skilled temporary workers—has been exploited by companies to replace American employees with lower-paid foreign labour, particularly in science, technology, engineering, and math (STEM) fields. "The large-scale replacement of American workers through systemic abuse of the program has undermined both our economic and national security," the document states.The announcement also emphasised the fee's role in ensuring only the "best of the best" temporary foreign workers are hired, while raising costs for abusers.The policy includes exceptions for cases deemed in the national interest by the Secretary of Homeland Security, and it directs the Department of Labor to revise prevailing wage levels and the Department of Homeland Security to prioritise high-skilled, high-paid applicants.

Within 30 days after the next H-1B lottery, agency heads must recommend whether to extend the restriction.

The imposition of a USD100,000 fee on H-1B visa petitions is poised to significantly impact Indian professionals, who constitute approximately 70% of H-1B visa recipients. This steep cost increase will likely deter many U.S. companies from sponsoring Indian workers. The policy aims to curb the replacement of American workers with lower-paid foreign labor, but critics argue it could push Indian talent toward countries like Canada or Europe.As per USCIS, H-1B applications are already at a four-year low of 359,000 for the next fiscal year. The H-1B visa enables U.S. companies to hire foreign workers with at least a bachelor’s degree for specialty occupations, offering a three-year stay extendable by another three years, with an annual cap of 65,000 visas plus 20,000 for U.S. advanced degree holders. President Trump’s September 19, 2025 proclamation imposing a USD100,000 fee per H-1B petition will disproportionately affect Indian technology professionals, who have historically been among the largest recipients due to their expertise in high-demand tech fields.

With Indian workers comprising about 70% of H-1B visa holders, the steep fee could significantly reduce their access to U.S. opportunities.