U.S. Increases H-1B Visa Fees, Affecting Mostly Indian Professionals

The United States has enacted a dramatic increase in H-1B visa fees, raising the annual cost to $100,000 per applicant effective September 21, 2025. The change, signed into law by U.S. President Donald Trump on September 19, is part of a broader overhaul of the skilled worker visa program and is expected to remain in effect for at least 12 months. The new fee applies only to new applicants and upcoming lottery cycles, not to existing visa holders or renewals, according to White House officials. This measure is widely seen as targeting Indian professionals, who account for over 70% of H-1B visa recipients annually.

Impact on Indian Professionals and Tech Firms

Indian IT professionals and technology companies are expected to bear the brunt of the fee hike. The cost is considered prohibitive, with many experts noting that it exceeds the annual salary of numerous skilled workers, making it unfeasible for most employers to sponsor staff except for the highest-value talent. Major Indian IT firms such as Infosys, Wipro, Tata Consultancy Services, and Cognizant, which rely heavily on the H-1B pathway to staff U.S. projects, now face unprecedented financial barriers. The move has triggered panic among visa holders and their families, with companies like Meta, Microsoft, and Amazon advising employees to avoid international travel and urging those abroad to return before the deadline to avoid being stranded.

U.S. Government Rationale and Industry Response

The White House has justified the fee increase as a measure to protect American workers from being replaced by lower-paid foreign labor. Officials cited statistics showing a sharp rise in the share of IT jobs held by H-1B visa holders and growing unemployment among U.S. computer science graduates. Commerce Secretary Howard Lutnick stated that the new policy would ensure only "extraordinarily skilled" individuals are admitted, while generating over $100 billion for the U.S. Treasury. President Trump argued that the funds would help lower national debt and taxes, and claimed that "Big Tech loves the idea."

Indian government officials have expressed serious concern over the humanitarian consequences of the fee hike, particularly the disruption to families and the potential impact on talent mobility, innovation, and economic growth. The Ministry of External Affairs is studying the full implications and has called for consultations between Indian and U.S. industry stakeholders. Immigration attorneys and industry experts warn that the steep fee may drive skilled professionals away from the U.S., potentially affecting Silicon Valley and other tech hubs reliant on global talent.

Broader Consequences and Uncertainty

The fee increase represents a massive jump from the previous range of $2,000–$5,000, sparking concerns about its impact on startups, small businesses, and the broader Indian IT services industry, which is valued at $250 billion. The decades-long wait for permanent residency faced by many Indian professionals makes the financial burden even heavier. Some companies may shift to alternative visa routes, such as the L-1, though these are limited to intra-company transfers and are also under scrutiny by U.S. authorities.

As the new policy takes effect, legal challenges are expected, and both employers and employees are grappling with uncertainty. The U.S. government has instructed the Department of Homeland Security and the Department of State to verify payment of the $100,000 fee before approving any new H-1B visa applications. Industry leaders and policymakers in both countries are assessing the long-term impact and exploring ways to mitigate the disruption caused by the sweeping changes.