Trump hikes H-1B visa fee to $100k to protect US jobs: What this could mean for Indian workers
United States President Donald Trump signed a proclamation on Friday introducing a steep $100,000 fee for companies sponsoring H-1B visas, the programme that allows foreign professionals to work in specialised roles in the United States. The change could reshape opportunities for foreign professionals, especially from India, across multiple sectors in the US. With major firms like Amazon, Microsoft, and Tata Consultancy Services heavily reliant on H-1B talent, the question now is: Who will still make the cut under this costly new system?
How the new fee changes the game
Until now, companies seeking H-1B workers paid $215 to register for the lottery and an additional $780 for Form I-129, the employer-sponsored petition for a non-immigrant worker. Under the new rules, the cost for sponsoring a single H-1B applicant jumps to $100,000. This dramatic increase is expected to reshape how companies approach hiring foreign talent, especially for positions that have historically been outsourced to countries like India.Major firms and consultancies, including Amazon, Tata Consultancy Services, Microsoft, Apple, Google, Wipro, Infosys, HCL Technologies, IBM, and Cognizant, employ a substantial number of H-1B visa holders across sectors. For instance, Amazon currently leads approvals with over 10,000 visas, while California hosts the largest concentration of H-1B workers nationwide, according to a Newsweek report. The increased cost could discourage bulk applications, potentially shifting focus back to American graduates and reducing dependency on overseas talent.
White House rationale for the fee hike
The administration has defended the fee increase as a measure to ensure that only truly highly skilled professionals enter the US. White House staff secretary Will Scharf described the H-1B programme as “one of the most abused visa systems,” explaining that it was intended for specialised professionals in fields where domestic expertise is scarce. “The goal is to ensure that the people coming in are genuinely highly skilled and not easily replaceable by American workers,” he added.US Secretary of Commerce Howard Lutnick framed the move as an economic recalibration. “No more will big tech companies train foreign workers at low cost. They have to pay the government $100,000 and then pay the employee. It’s simply not economical. The priority now is to train Americans from our universities and stop outsourcing jobs,” he said.
Impact on Indian workers
Indian professionals form the majority of H-1B visa recipients, especially in sectors like tech, consulting, healthcare, research, and administrative services. While high-skilled workers with specialised expertise may still secure employment, those in junior or entry-level positions may face reduced opportunities due to the higher sponsorship cost. Startups and small businesses, in particular, may struggle to absorb the additional expense, potentially narrowing pathways for new entrants from abroad.Critics argue that the H-1B system has often allowed companies to hire foreign talent at lower wages for routine roles while paying American employees significantly more for similar work. The new fee seeks to correct this imbalance, making foreign recruitment economically comparable to domestic hiring. The policy could also stimulate further discussions about lottery reforms and wage-based prioritisation, aligning visas with highly skilled and high-wage positions.
The bigger picture
While the proclamation marks a significant shift in US immigration policy, it is part of a broader effort to protect American employment in technology sectors. Advocates like the AFL-CIO have welcomed the changes as “steps in the right direction” but continue to push for allocation based on wage offers rather than random selection, a reform that was previously considered during Trump’s first term.Interestingly, the policy change comes amid historical context: First Lady Melania Trump, née Melania Knauss, had obtained an H-1B visa in 1996 for modelling work, illustrating how the visa programme has long played a role in bringing international talent to the US.As companies recalibrate their hiring strategies and Indian professionals weigh their prospects, one question remains central: Will the H-1B remain a gateway for foreign expertise, or will it become a selective arena catering only to the highest-paid, most specialised talent? The next few months may define the contours of global employment mobility in ways not seen before.
