U.S. Imposes $100,000 H‑1B Visa Fee for New Applicants: What It Means for Indian Tech Workers
In a sudden and sweeping move, the U.S. government has implemented a new rule imposing a $100,000 fee on all new H‑1B visa applications, sparking confusion, travel chaos, and widespread concern across the tech industry — especially in India, where most H‑1B workers originate.
What Changed?
President Donald Trump signed a proclamation on September 19, 2025, introducing the hefty new visa fee. The rule came into effect early today, September 21 at 12:01 AM ET, giving companies and workers just over a day to react.
The H‑1B visa, primarily used by skilled foreign workers in technology and other professional fields, is a critical pipeline for Indian engineers and developers working in the U.S. Until now, the visa filing fees were a fraction of the newly announced cost — typically ranging from $2,000 to $5,000.
Who Is Affected?
Initially, the lack of clarity around the rule led to panic, with many H‑1B holders — especially those currently outside the U.S. — fearing they would be subject to the fee or even denied re-entry.
However, the U.S. government has now clarified that the new $100,000 charge:
- Applies only to new H‑1B applications (i.e. first-time petitions)
- Does NOT apply to current H‑1B holders
- Does NOT apply to renewals or re-entries
- Is a one-time fee, not an annual charge
This clarification came too late for some, as flight prices surged and visa holders scrambled to return to the U.S. before the deadline — unsure whether they’d be locked out under the new rule.
Impact on Indian Tech Industry
India’s IT sector is expected to bear the brunt of this change. Over 70% of H‑1B visa recipients each year are Indian nationals, mostly from tech firms like Infosys, TCS, Wipro, and others.
Nasscom, India’s top tech industry body, has warned the new policy could “severely disrupt” business operations, given the drastically higher cost of bringing in workers. Smaller companies, in particular, may now find it unviable to sponsor foreign talent.
The Indian government also expressed concern about the “humanitarian consequences” — especially for families separated by travel complications or workers caught mid-process.
U.S. Reactions and Legal Questions
Within the U.S., business groups including the U.S. Chamber of Commerce have called the move “disruptive” and “harmful to innovation.” Legal experts have raised questions about whether the executive branch has the authority to impose such a steep fee unilaterally.
There’s also uncertainty about exceptions for critical sectors like healthcare or AI, and how the fee will be enforced in complex visa situations — such as employer transfers or change-of-status petitions.
What’s Next?
For now, the key takeaway is:
- New applicants must factor in the $100,000 fee.
- Existing H‑1B workers can renew or re-enter as usual.
- Employers will likely reduce new H‑1B filings or shift to remote/offshore models.
More details are expected as implementation unfolds. Legal challenges may also arise in the coming weeks.
