Why Indians Will Suffer Most From the New $100,000 H-1B Visa Fee|Explained
- TPP
- Sep 21
- 5 min read
Data shows 70% of approvals go to India-born professionals — now a costly rule could disrupt careers, wages, and mobility.
The United States has once again placed immigration at the centre of political and economic debate. On September 21, the Trump administration announced a new policy that will impose a $100,000 fee on each H-1B visa petition.
The H-1B programme, widely used by technology companies to hire skilled foreign workers, has long been controversial.
For India, the move carries serious consequences because Indians make up more than 70% of all H-1B visa beneficiaries every year since 2015.
While some influential figures in the Trump camp have called the programme a “scam”, others, including entrepreneurs like Elon Musk and politician Vivek Ramaswamy, have defended it for bringing top talent to the US.
The new fee structure—described as the costliest barrier in the visa’s history—threatens to reshape global tech hiring and deepen the already polarised immigration discourse in the US.
What Is the H-1B Visa and Why It Matters?
The H-1B visa is a non-immigrant visa that allows US companies to employ foreign workers in specialty occupations—roles requiring theoretical or technical expertise, particularly in science, engineering, and information technology. It is valid for three years and extendable to six years.
Each year, 85,000 new H-1B visas are issued through a lottery system.
They are heavily used by the tech industry, including giants such as Amazon, Microsoft, Meta, Alphabet (Google), and Indian firms like Infosys and Tata Consultancy Services (TCS).
In 2024, nearly 400,000 H-1B visas were approved, including renewals.
For Indian workers, the visa has been a gateway to the American dream, offering high-paying jobs and global exposure. For US companies, it has been a lifeline to fill the persistent STEM skills gap (Science, Technology, Engineering, Mathematics).
The Trump Administration’s New Move
President Donald Trump signed an executive order that enforces a $100,000 (₹8.8 million) fee per H-1B petition. Initially, Commerce Secretary Howard Lutnick stated that the fee would be charged annually, sparking panic among companies and visa holders. Later, the White House clarified that:
The fee is one-time only, not annual.
It applies only to new petitions, not to renewals or current visa holders.
It will remain in force for one year, but can be extended if deemed in the “national interest.”
This clarification, issued by Press Secretary Karoline Leavitt, calmed fears but did not soften the blow: the cost of sponsoring H-1B workers has risen by more than 60 times from the current fee of around $1,500.
Why Indians Will Be the Hardest Hit
Data from the US Citizenship and Immigration Services (USCIS) show that Indians account for more than 70% of H-1B petitions approved each year since 2015. The second-largest group, Chinese workers, account for only 12–13% since 2018.
This dominance has drawn the attention of nativist Republicans who claim Indians are “stealing American jobs” and lowering wage standards. Their argument is simple:
Many Indian H-1B professionals are hired at lower-than-average salaries.
Nearly 70% of H-1B petitions for Indians in 2023 were for salaries below $100,000 per year.
Only 5% of petitions were for salaries above $150,000.
By contrast, the median IT salary in the US in 2023 was $104,420 (Bureau of Labor Statistics).
Thus, critics argue that corporations misuse the programme to staff low-to-mid-level jobs at cheaper wages, instead of hiring Americans. Supporters counter that the wage levels are market-driven and that US STEM graduates are not sufficient to meet demand.
The Polarised Immigration Discourse in the US
To understand the new H-1B fee, one must look at the larger immigration debate in America.
Immigration has become one of the most polarising political issues in the US.
A YouGov poll (October) revealed that 14.6% of voters saw immigration as the top election issue. In 2012, this number was only 2.1%.
Trump’s “America First” rhetoric has framed immigration as a threat to the working class, claiming foreign workers depress wages and take away jobs.
While much of his rhetoric has targeted low-skilled migrants, the same themes are now applied to skilled workers under H-1B visas. Trump allies like Stephen Miller (architect of Trump’s immigration policies) and Lutnick argue that the US should focus on hiring its own citizens instead of foreign professionals.
Reactions from Industry and India
Tech Industry Response
The announcement triggered an immediate response from technology companies:
Amazon, Microsoft, JP Morgan, Meta, and Alphabet advised H-1B employees to remain in the US or return quickly if abroad.
Amazon even instructed workers abroad not to attempt re-entry until “further guidance.”
Companies fear losing critical staff as the fee makes hiring foreign workers prohibitively expensive.
Indian Government’s Reaction
India, whose nationals are most affected, expressed deep concern. External Affairs Minister Subrahmanyam Jaishankar warned that the new rule will have “humanitarian consequences”.
Families may face disruptions if visas become unaffordable.
Strong people-to-people ties between India and the US, built on the exchange of skilled workers, could be strained.
The government urged the US to take into account the mutual benefits the programme has created.
India’s leading tech body, NASSCOM, added that such abrupt policy changes create “considerable uncertainty for businesses, professionals, and students worldwide.”
The “Gold Card” Alternative
Interestingly, while raising barriers for most, the Trump administration has introduced a “gold card” programme.
Grants permanent residency to individuals who can pay $1 million.
Allows companies to fast-track a sponsored worker by paying $2 million.
Marketed as a way to attract entrepreneurs and high-income earners.
Commerce Secretary Lutnick bluntly put it: “We’re going to only take extraordinary people at the very top,” dismissing the current system as one that attracts people from the “bottom quartile.”
This dual approach—blocking mid-level professionals while encouraging millionaires—has drawn criticism for favouring wealth over skill.
Data Snapshot: Who Benefits from H-1B?
In the first half of 2025, Amazon received the most H-1B approvals: 10,044 petitions.
Tata Consultancy Services (TCS), India’s largest IT company, was second with 5,505 approvals.
In 2024, around 400,000 H-1B visas were approved, of which 260,000 were renewals.
This shows that Indian-origin firms and employees are central to the programme.
The Larger Context: Trade Tensions and Politics
The visa fee hike also comes amid strained trade ties between India and the US.
Trump imposed tariffs on India for purchasing Russian oil.
Bilateral trade remains large: the US exported $41.5 billion worth of goods to India in 2024 and imported $87.3 billion.
Indian Commerce Minister Piyush Goyal is set to visit the US for trade talks, where visas will likely feature.
Thus, the H-1B issue is not just about immigration; it is intertwined with geopolitics and economic negotiations.
Balancing Criticism and Support
Critics Say:
The programme depresses American wages.
Corporations misuse visas for low/mid-level roles.
Average salaries of H-1B holders lag behind American averages.
Supporters Argue:
The US faces a skills gap in STEM.
India (2.55 million) and China (3.57 million) produce far more STEM graduates than the US (820,000).
Without H-1B, companies cannot compete globally.
It strengthens India–US tech ties.
The Trump administration’s latest policy signals a shift from reform to restriction. By imposing the $100,000 fee, it has created a financial wall that will disproportionately affect Indian workers, who are the backbone of the H-1B system.
The introduction of the gold card for millionaires further shows a preference for wealth over merit. At the same time, Indian families, tech companies, and global supply chains will feel the disruption.
Whether the rule expires after a year or gets extended, one thing is clear: the immigration discourse in the US has hardened, and Indian professionals, once seen as the biggest beneficiaries of globalisation, now stand at the crossroads of politics, economics, and nationalism.
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