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US President Donald Trump holds a signed executive order authorizing the Trump Gold Card in the Oval Office of the White House in Washington, DC, US, on Friday, Sept. 19, 2025. Trump is signing a proclamation that would move to extensively overhaul the H-1B visa program, requiring a $100,000 fee for applications in a bid to curb overuse, according to a White House official familiar with the matter. Photographer: Aaron Schwartz/CNP/Bloomberg
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Aaron Schwartz
In a move that significantly impacts Indian talent in the US and redefines hiring decisions of American companies, US President Donald Trump has signed a proclamation imposing a new $100,000 annual fee on H-1B visas.
Companies that wish to employ foreign workers on H-1B visas must now pay the additional fee for the entry of such workers in the US.
“…The entry into the United States of aliens as non-immigrants to perform services in a specialty occupation…is restricted, except for those aliens whose petitions are accompanied or supplemented by a payment of $100,000,” the proclamation, which comes into effect from September 21, reads. It adds that high numbers of “relatively low-wage workers” in the H-1B programme is detrimental to American workers’ opportunities, especially at the entry level, necessitating such a move. The proclamation makes room for a “national interest” exemption, details of which are unclear.
Essentially, from Sunday, employers will be required to show proof of a $100,000 annual payment for every H-1B sponsorship, making it critical for companies to fast-track return of employees outside the US before the effective date, to avoid the charge. Giants like Microsoft have issued advisories asking staff to return before the deadline.
The existing fee structure of H-1Bs, which includes various components and varies depending on the processing time and number of foreign workers employed by companies, etc., ranges between $3,000 and $10,000.
A businessline analysis of the US Citizenship and Immigration Services data shows that the move will significantly impact Indian talent as Indians have been the biggest recipients of the H-1B visas with over 70 per cent share of total H-1B issuances in fiscal 2025.
Top sponsors
In terms of companies impacted, big tech firms Amazon, Meta, Google, Microsoft are among the top sponsors of H-1Bs with Indian IT services majors also in the top 20. Some of these companies have already started putting out advisories to help allay fear of employees on H-1Bs.
However, a senior government official said the Centre cannot do much about it right now as the decision has to be viewed as one taken by US for its own sovereignty, the government is in touch with the Indian embassy in the US, IT industry body Nasscom and others, closely observing the immediate impact of the H-1B visa fee.
On the positive side, the US action will help boost GCCs in India and remote work opportunities, the official added.
Poorvi Chothani, Founder and Managing Partner, LawQuest, an immigration and employment law firm, said that a lot of aspects about the order, especially around the exact process and place of payment of the fees, still remains unclear. “Some legal groups are already preparing litigation to challenge this,” she said, noting that it will have a “devastating effect” on employers that need foreign workers and particularly challenging for people currently holding H-1Bs, but outside the US.
Gaurav Vasu, Founder and CEO, UnearthInsight, said that big tech giants hire high-skill foreign workers in the larger salary brackets and this additional fee will not impact their financials greatly. “This would discourage mass H1B for lower tech salaries from foreign countries largely impacting mid- to small-IT services firms, GCCs and US start-ups trying to hire from foreign lands,” he added.
To hit mid/small firms
Sanchit Vir Gogia, Chief Analyst and CEO at Greyhound Research, noted that in the near-term Indian IT services will lean more on offshore capacity. In case of US enterprises, large firms with scale and deep offshore benches can absorb the shock. Mid-tier and smaller firms, more dependent on onsite presence, will feel it far more acutely. Companies in the field of AI, semiconductors, and biotech will be among those badly hit as a large set of niche talent comes from foreign countries. The healthcare system in the US, too, will feel the strain, he added.
With inputs from Yashaswani Chauhan, Chennai
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Published on September 20, 2025
