H-1B Visa Changes: How Trump’s $100,000 Fee Could Impact Professionals
After issuing an executive order, US President Donald Trump increased the cost of H-1B visas on Friday. “The H-1B nonimmigrant visa program has been intentionally exploited to replace, rather than supplement, American workers with lower-paid, lower-skilled labor,” according to the executive order, which also stated that the program was established to bring “temporary workers into the United States to perform additive, high-skilled functions.”
Indian IT industry are anticipated to be impacted by the new announcement. Following actions taken by President Trump against Indian IT companies that affected their American Depositary Receipts (ADRs), shares of Infosys and Wipro dropped by as much as 4.5 percent in the United States.
Donald Trump also took aim at IT companies, saying: “American workers in computer-related fields have suffered greatly as a result of prominent manipulation of the H-1B system by IT firms in particular.”
The following are the effects of the new regulation on H-1B visa holders:
- Trump announced that H-1B visa petitions will now require a payment of $100,000. For Indian workers, this adds another hurdle in an already challenging process. While applying for a Green Card is an option, the wait times are typically long, meaning many will have to keep renewing their visas and shell out over ₹88 lakh each time.
- Employers will need to maintain proof of payment, the Secretary of State must verify that it’s been received, and both the Department of Homeland Security and the State Department are responsible for denying entry to anyone whose employer hasn’t paid.
- Several major tech companies have sent internal advisories to their H-1B and H-4 visa employees, urging those already in the US to remain in the country for the foreseeable future. Employees were cautioned against travelling abroad, as leaving could result in denial of reentry, sources told News18.
- While the proclamation does not explicitly reference H-4 dependents, companies have recommended that H-4 visa holders also stay put, the sources added. For employees currently outside the US, the advisories strongly encourage returning as soon as possible, ideally before the deadline, even if last-minute travel arrangements are required.
- The order goes into effect at 12:01 am Eastern Daylight Time on September 21, 2025, and applies only to those entering or attempting to enter the United States after this date.
Read Also: Everything You Need to Know About the H1B Visa
FAQs – Trump’s $100,000 H-1B Visa Fee and Its Impact
Q1: What recent action did President Donald Trump take regarding H-1B visas?
A: President Trump issued an executive order increasing the cost of H-1B visa petitions to $100,000 for certain applicants.
Q2: Why did Trump implement this fee hike?
A: The executive order claims the H-1B program has been exploited to replace American workers with lower-paid, lower-skilled labor, rather than supplement the workforce with high-skilled temporary employees.
Q3: When does the new $100,000 H-1B visa fee take effect?
A: The order goes into effect at 12:01 am Eastern Daylight Time on September 21, 2025, applying only to those entering or attempting to enter the U.S. after this date.
Q4: Who will be affected by this new fee?
A: Primarily H-1B visa holders entering the U.S. after September 21, 2025, along with their employers who must pay the fee.
Q5: How does this affect Indian IT professionals?
A: Indian IT workers face higher financial hurdles, as applying for or renewing H-1B visas will cost over ₹88 lakh (approx. $100,000) each time, impacting those relying on U.S. employment for career growth.
Q6: Can H-1B holders apply for a Green Card to avoid this fee?
A: While applying for a Green Card is an option, the long wait times mean many workers will still need to renew H-1B visas multiple times, paying the $100,000 fee repeatedly.
Q7: What responsibilities do employers have under the new rule?
A: Employers must maintain proof of payment, as the Secretary of State, Department of Homeland Security, and State Department will verify payments. Non-compliance may result in denial of entry to the employee.
Q8: How have major tech companies responded?
A: Companies have issued internal advisories to H-1B and H-4 employees, urging those already in the U.S. to remain in the country to avoid complications.
Q9: Are H-4 dependents affected by the new fee?
A: The executive order does not explicitly mention H-4 visas, but companies recommend H-4 holders stay put to avoid reentry issues.
Q10: What should employees currently outside the U.S. do?
A: Advisories encourage H-1B and H-4 visa holders to return to the U.S. as soon as possible, ideally before the fee takes effect.
Q11: What impact did this announcement have on Indian IT companies?
A: Shares of Infosys and Wipro dropped up to 4.5% in the U.S., reflecting investor concern over higher costs and potential impact on operations.
Q12: What sectors are most impacted by this fee hike?
A: The IT and tech industry is most affected, as these sectors heavily rely on H-1B visa workers for high-skilled roles in the U.S.
Q13: Does the fee apply to employees already in the U.S.?
A: No, the fee applies only to new entries or attempts to enter the U.S. after September 21, 2025.
Q14: Will this affect visa processing for current H-1B holders?
A: Current holders already in the U.S. are not immediately affected, but future renewals may incur the new fee if they exit and reenter.
Q15: How will visa petition approval be affected?
A: The payment verification process is now mandatory. Failure to provide proof may result in denial of entry or visa issuance.
Q16: Can employers pass the $100,000 fee on to employees?
A: While technically possible, U.S. labor laws and visa regulations generally require the employer to pay H-1B fees, making it unlikely that employees can be legally charged directly.
Q17: What is the purpose of this executive order according to the White House?
A: The order aims to protect American workers by discouraging misuse of the H-1B system, ensuring that the program serves its original goal of supplementing high-skilled labor.
Q18: Are there any exemptions or special cases for the fee?
A: The executive order does not specify exemptions; all new entries under H-1B after the effective date are expected to comply.
Q19: How should companies prepare their H-1B employees?
A: Employers are advised to inform employees of the fee, ensure timely payments, maintain documentation, and caution against international travel during this period.
Q20: Where can employees find official updates on this rule?
A: Updates can be monitored via the U.S. Department of Homeland Security, U.S. State Department, and official White House communications.
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