Trump’s $100,000 H-1B fee may disrupt Indian families in US, says MEA
India's Ministry of External Affairs is reviewing the US's new H-1B visa rules. These rules include a $100,000 annual fee. The ministry acknowledges industry concerns and potential humanitarian consequences. Donald Trump introduced the fee, aiming...
By ET Online | Updated:
What’s next after $100k H-1B fee hike? Explaining current developments and its Impact
India’s Ministry of External Affairs (MEA) on Saturday said it is studying the implications of the United States government’s new restrictions on the H-1B visa programme, which now comes with a steep annual fee of USD 100,000 for companies hiring foreign skilled workers.
The ministry said Indian industry has already put out an initial analysis to clarify perceptions around the programme, while a deeper review is underway. “Industry in both India and the US has a stake in innovation and creativity and can be expected to consult on the best path forward,” the statement noted.
The government underlined that skilled talent mobility has played a vital role in technology growth, innovation, competitiveness, and wealth creation in both countries. It added that policymakers on both sides will have to weigh the broader benefits of people-to-people ties before finalising decisions.
The MEA also highlighted concerns over the human impact of the restrictions. “This measure is likely to have humanitarian consequences by way of the disruption caused for families. Government hopes that these disruptions can be addressed suitably by the US authorities,” the statement said.
What Trump announced In a sweeping move that could reshape the US immigration system, President Donald Trump has signed a proclamation imposing a $100,000 annual fee on H-1B visas. The White House said the step will ensure that only “extraordinarily skilled” workers enter the country, while discouraging firms from relying on foreign professionals to replace American workers.
Commerce Secretary Howard Lutnick said the decision corrects past policies where people entered on employment-based visas with below-average salaries, sometimes relying on government support. He added that the new regime will exclude the “bottom quartile” and could generate over $100 billion for the US Treasury.
For India, the decision carries major consequences. Nearly 71% of H-1B visa holders are Indian, largely working in the technology sector. Companies such as Infosys, Wipro, Cognizant, and Tata Consultancy Services have long depended on the programme to send engineers and developers to US projects. With visas lasting three years and renewable up to six, the high fee could make it too costly for firms to retain Indian talent during long waits for permanent residency.
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Trump imposes $100,000 fee on H-1B visas
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US President Donald Trump signed a proclamation on September 19, 2025, introducing a $100,000 fee for H-1B visas. The announcement, effective September 21, sparked immediate concern among Indian IT professionals and global tech firms. Within 24 hours, the White House clarified the rule applies only to new petitions and will not affect current visa holders or renewals.
US President Donald Trump signed a proclamation on September 19, 2025, introducing a $100,000 fee for H-1B visas. The announcement, effective September 21, sparked immediate concern among Indian IT p..
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The $100,000 payment is now mandatory for any fresh H-1B petition filed on or after 12:01 AM ET, September 21, 2025.
Without payment, petitions will not be processed.
Earlier, applicants paid around $215 for registration and $750 for petitions.
With visas valid for three years, the cost could reach $300,000 for a standard term
The $100,000 payment is now mandatory for any fresh H-1B petition filed on or after 12:01 AM ET, September 21, 2025.Without payment, petitions will not be processed.Earlier, applicants paid around $2..
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The White House clarified that:
Petitions already filed or approved remain valid.
Current H-1B holders are not required to pay the fee.
Renewals and re-entry for those holding valid visas will continue as before.
The White House clarified that:Petitions already filed or approved remain valid.Current H-1B holders are not required to pay the fee.Renewals and re-entry for those holding valid visas will continue ..
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Indians account for about 71% of H-1B visa holders, largely in the IT services sector. Companies like Infosys, TCS, Wipro, and Cognizant depend heavily on the program. The clarification provides relief for existing professionals, but new applicants—especially junior and mid-level staff—will face higher barriers.
Indians account for about 71% of H-1B visa holders, largely in the IT services sector. Companies like Infosys, TCS, Wipro, and Cognizant depend heavily on the program. The clarification provides reli..
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Shares of US-listed Indian IT companies fell between 2% and 5% after the initial announcement.
Industry body NASSCOM flagged the one-day transition as disruptive and unrealistic.
US tech firms including Microsoft, Amazon, and JPMorgan initially advised H-1B workers abroad to return quickly, though clarification has eased some travel concerns.
Shares of US-listed Indian IT companies fell between 2% and 5% after the initial announcement.Industry body NASSCOM flagged the one-day transition as disruptive and unrealistic.US tech firms includin..
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Commerce Secretary Howard Lutnick argued past visa policies allowed “bottom quartile” workers, some earning below-average salaries. He said the new fee will filter out low-paid roles and raise over $100 billion for the US Treasury. President Trump added: “Big tech loves the idea. The funds will help lower debt and taxes.”
Commerce Secretary Howard Lutnick argued past visa policies allowed “bottom quartile” workers, some earning below-average salaries. He said the new fee will filter out low-paid roles and raise over $..
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H-1B visa holders with valid documents can continue to travel in and out of the United States without paying the new fee. Dependents on H-4 visas are also unaffected, provided their linked H-1B remains valid.
H-1B visa holders with valid documents can continue to travel in and out of the United States without paying the new fee. Dependents on H-4 visas are also unaffected, provided their linked H-1B remai..
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Alongside the fee hike, the administration unveiled the “Gold Card” visa:
$1 million contribution for individuals or $2 million via corporate sponsorship.
Offers a direct path to permanent residency.
Aimed at high-net-worth investors and professionals with extraordinary ability.
Alongside the fee hike, the administration unveiled the “Gold Card” visa:$1 million contribution for individuals or $2 million via corporate sponsorship.Offers a direct path to permanent residency.Ai..
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Indian IT firms may increase outsourcing to India to reduce costs.
US companies could focus on hiring Indian-origin professionals already in the US.
Legal challenges are expected over the government’s authority to impose such fees.
The move underscores a shift to economic-driven immigration policy.
Indian IT firms may increase outsourcing to India to reduce costs.US companies could focus on hiring Indian-origin professionals already in the US.Legal challenges are expected over the government’s ..
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Only new petitions face the $100,000 fee.
Existing holders and renewals are safe for now.
Companies may become more selective, sponsoring only senior or highly specialized talent.
The long-term impact will depend on whether courts or Congress push back against the policy.
Only new petitions face the $100,000 fee.Existing holders and renewals are safe for now.Companies may become more selective, sponsoring only senior or highly specialized talent.The long-term impact w..