US: Trump to set $100K H-1B visa fee, may affect Indian techies
The Trump administration has announced a massive increase in H-1B visa fees, imposing a USD 100,000 annual charge that will fundamentally alter how American companies hire skilled foreign workers, particularly impacting Indian IT professionals who comprise the largest group of beneficiaries. Commerce Secretary Howard Lutnick revealed the changes during a Friday press call, describing the fee hike as a deliberate strategy to eliminate what the administration considers lower-skilled training positions while preserving opportunities for highly skilled workers.
What is H-1B Visa
The H-1B is a nonimmigrant visa in the United States Section 101(a)(15)(H) of the Immigration and Nationality Act. It allows U.S employers to temporarily employ foreign workers in speciality occupations. If a foreign worker in H-1B status quits or is suspended by their sponsoring employer, the worker must either apply for and receive permission to change to another non imigrant status, find another employer, depending on the applications for adjustment of status and change of Visa or leave the United States.
Let us understand what is Speciality occupations are
Regulations define as one that requires the theoratical and practical application of a body of highly specialized knowledge in any field of human endeavor, including but not limited to architecture, engineering, mathematics, physiical sciences, social sciences, biotechnology, medicinde and health education, law, accounting, business speciality work, theology and the arts and requires a bachelor's degree or it's equivalent as a minimum qualification. With exception of Fashion models, who must possess "special ability". Similarly foreign workers must possess at least a bachelor's degree or its equivalent and if required a state issued license to work in that field. H-1B work authorization is strictly limited to employment by the sponsoring employer.
Dynamic Increase in H-1B Visa Processing Cost
The new $100,000 annual fee represents a dramatic increase from current H-1B processing costs, which typically amount to a few thousand dollars. Companies will pay this fee on top of existing vetting charges, with the administration still deciding whether to collect the full amount upfront or annually.
"A company that wants to buy an H-1B visa... it's USD 100,000 per year," Secretary Lutnick explained. The visa maintains its current structure: three years with one possible renewal for a total of six years. The fee applies to all H-1B positions regardless of salary level or skill requirement, making the programme economically viable only for roles that justify the substantial cost.
Aims to Eliminate "trainee programmes"
The administration explicitly aims to eliminate what it calls "trainee programmes" - positions where companies hire less experienced foreign workers for training and development on H-1B visas. "No longer will you put trainees on an H-1B visa - it's just not economic anymore," Lutnick said. "If you're going to train people, you're going to train Americans."
This change could significantly impact Indian IT services companies like Infosys, TCS, and Wipro, which have historically used H-1B visas to bring junior and mid-level engineers to the US for client projects and skills development. Indian nationals consistently receive the majority of H-1B approvals, with Indian IT companies among the largest sponsors. The fee increase threatens to reshape this landscape dramatically.
"If you have a very sophisticated engineer and you want to bring them in because they have expertise, then you can pay $100,000 a year for your H-1B visa," Lutnick noted, suggesting the programme will now target only senior-level positions. Secretary Lutnick claimed technology companies support the changes because they provide certainty and speed in processing applications. He said discussions with "hundreds of companies" informed the $100,000 fee structure.
"They are very happy about it, because they would like a process that is known, that is clear and that is swift," he said of company responses. However, the substantial cost increase will likely make companies far more selective about which positions warrant H-1B sponsorship, potentially reducing overall applications despite maintained visa caps. The administration emphasised that H-1B visa quotas remain unchanged - the programme will issue the same number of visas but expects fewer applications due to cost barriers. Current annual limits stand at 65,000 regular H-1B visas plus 20,000 for advanced degree holders from US universities.
"Remember, these are the same cap, it's the same visa. There'll just be less of them issued because they used to be free, and now they cost USD 100,000," Lutnick explained. The new fees will be implemented alongside enhanced vetting procedures by the Department of Homeland Security. While no specific start date was announced, the administration indicated changes would roll out within weeks of the current announcement.
Companies with existing H-1B workers may face immediate impacts when renewal periods arrive, as the new fee structure will apply to all applications processed after implementation.
The administration framed the changes as protecting American workers and generating revenue for the US Treasury. Officials argue that free or low-cost H-1B visas encouraged companies to hire foreign workers instead of training Americans. "The idea is to bring in high earners, people with money," Lutnick said, contrasting this with what he described as previous policies that brought in "low earners" who "take jobs from Americans."
The H-1B changes represent part of broader Trump administration efforts to reshape US immigration policy around economic contribution rather than humanitarian or family-based considerations.
While maintaining that highly skilled workers remain welcome, the administration clearly intends to raise barriers significantly, ensuring that only positions with substantial economic value justify the cost of foreign hiring. For Indian professionals and companies, the changes signal a need to adapt strategies for US market engagement, potentially accelerating trends toward higher-value services and reduced reliance on temporary worker transfers.
How many H-1B Visas are issues each year
The US government issues 85,000 H-1B visas annually, mostly used for technical jobs. Applications for this year are already full. According to the data, Amazon alone has received more than 10,000 visas this year, while companies like Microsoft and Meta have been approved for more than 5,000 visas. Government data shows that India received the largest number of H-1B visas last year. However, this visa program has also faced critisism. Many Americans tech workers say companies use H-1B visas to drive down ages and take jobs away from American workers.
President Donald Trump said - only talented people will be given visas
The Golden Card's unlimited residency grants citizens not only a passport but also the right to vote and all the benefits as a U.S. citizen. The process is very simple and very similar to that of obtaining permanent recidence through a green card. President Trump stated that this visa program is specially for wealthy foreigners who have great wealth allowing them to live and work in United States for upto $1 million. He stated that United States will not only grant visas to talented indivisuals, not those who could take away American's jobs. He also stated that this money will be used to reduce taxes and pay down government debt. With Source- (ANI)