Trump administration has announced a steep hike in H-1B visa fees, imposing an annual charge of USD 100,000.
The Trump administration has alleged that the H-1B visa program has been intentionally misused, arguing that it has been used to supplement American workers with lower-paid, less-skilled foreign labor. The administration claims this practice poses a threat to both the country’s economic and national security.
US President Donald Trump defended the decision as part of his “Hire American” policy, stating that the measure would push companies to hire American workers.
“We need workers. We need great workers, and this pretty much ensures that,” Trump said during the signing ceremony.
Commerce Secretary Howard Lutnick Explains the Intent Behind New Policy
Commerce Secretary Howard Lutnick explained the intent behind the new policy, saying that it is designed to deter companies from hiring foreign workers.
“No more will big tech companies train foreign workers under cheap visas. If they want an H-1B worker, they will need to pay USD 100,000 a year—making it only viable for top-tier roles,” he said.
Impact On Indian IT Firms
The decision is expected to particularly affect Indian IT companies such as Infosys, Wipro, and Tata Consultancy Services (TCS). These firms have historically relied on H-1B visas to place thousands of junior and mid-level engineers on projects in the U.S. As Pew Research reports, Indians received 73% of all approved H-1B visas in 2023, far exceeding the 12% granted to Chinese nationals. Consequently, this significant fee hike is seen as a major setback that could dramatically reshape the landscape for both Indian professionals and the IT firms that sponsor them.
Visa Structure Remains But Costs Skyrocket
The H-1B visa program, capped at 85,000 new visas annually (65,000 regular + 20,000 advanced degree holders), retains its existing structure of three years with a single renewal for six years total. However, under the new rules, each application, whether new or renewal, will require the USD 100,000 fee, alongside other administrative charges.
This effectively raises the cost of hiring a foreign skilled worker by several hundred thousand dollars over six years, making companies far more selective about sponsorship.
