Trump’s H-1B fee hike a ‘self-goal,’ says former diplomat KP Fabian

US President Donald Trump’s executive order imposing a $100,000 annual fee on companies sponsoring H-1B visas has drawn sharp criticism from former diplomat KP Fabian.

“To put it mildly, it's an atrocity and unnecessary. It will hit Indians, but it will also hit the American economy because the young Indians are providing a good part of the brain power required to take the American economy forward. He is keen on scoring a self-goal...,” Fabian said.

The fee hike represents a major overhaul of the H-1B program, which allows US companies to hire skilled foreign workers, particularly from India. Indian IT professionals have traditionally formed the largest group of H-1B recipients, powering key sectors of the American economy.


Commerce Secretary Howard Lutnick said the change targets lower-skilled trainee positions, while preserving opportunities for highly skilled workers. “No longer will you put trainees on an H-1B visa—it’s just not economic anymore. If you're going to train people, you're going to train Americans,” he said.

What the fee means

• The new $100,000 annual fee is a sharp jump from current processing costs, which total a few thousand dollars.
  
  
• Companies will pay the fee on top of existing vetting charges. It remains unclear if the amount will be collected upfront or annually.
  
  
• H-1B visas retain their structure: three years initially, with a possible renewal up to six years.
  
  
• The fee applies to all H-1B positions, regardless of salary or skill level, making it viable only for high-value roles.
  
  

Impact on Indian IT companies
Companies like Infosys, TCS, and Wipro, which rely on H-1B visas to bring junior and mid-level engineers to the US, may face challenges. The fee is expected to reduce applications, as firms become selective about which positions justify the cost.

Lutnick noted that technology companies generally support the changes for clarity and speed in processing. “They are very happy about it, because they would like a process that is known, that is clear and that is swift,” he said.

The H-1B visa quota remains unchanged—65,000 regular visas and 20,000 for US advanced-degree holders—but fewer applications are expected due to the new cost. Enhanced vetting procedures will also be introduced.

Officials said the fee aims to protect American workers, prioritize highly skilled immigrants, and generate revenue for the US Treasury. “The idea is to bring in high earners, people with money,” Lutnick explained, contrasting it with previous policies that allowed lower-paid foreign workers to fill jobs.

For Indian professionals and companies, the fee increase signals the need to adapt strategies for US market engagement, potentially accelerating a shift toward higher-value services and reduced reliance on temporary worker transfers.