US President Donald Trump sent shockwaves across the world in late September after announcing a $100,000 annual fee on new H-1B visas. The Department of Homeland Security also announced last week that the lottery system for visa allocation was officially being scrapped in favour of wage-based selection. The POTUS has led an intensive crackdown against immigration over the past year — leaving hundreds of thousands of Indians in the lurch. Members of the Republican Party have also championed outright bans in varying formats amid growing calls to put ‘American workers first’.
“Entry into the United States…is restricted, except for those aliens whose petitions are accompanied or supplemented by a payment of $100,000. The Secretary of Homeland Security shall restrict decisions on petitions not accompanied by a $100,000 payment for H-1B specialty occupation workers who are currently outside the United States, for 12 months following the effective date of this proclamation,” read an update from Trump on September 19.
The policy change caused widespread panic as thousands rushed to return before the deadline — with the US government issuing multiple clarifications in the ensuing days. The fee is not applicable for current H-1B visa holders (even if they travel abroad and re-enter the country in most cases) or those seeking visa transfer, extension and amendments.
Who uses H-1B visas?
The US government granted nearly 400,000 H-1B visas during the previous fiscal year — with Indian nationals receiving approximately 71% of the total. Thousands of H-1B visas were greenlit for Infosys, TCS, Cognizant, HCL America and Wipro in 2024 as domestic IT firms repeatedly led the approval list.
Data from the National Foundation for American Policy revealed last month that US companies had outpaced their counterparts for the first time for H-1B visas in 2025. Amazon, Meta Platforms, Microsoft and Google topped the list of employers with petitions approved for initial employment. Only Tata Consultancy Services, LTIMIndtree and HCL America have remained within the top 25. And the top seven Indian IT employers secured merely 4573 approvals (a 70% drop from 2015 and 37% lower than 2024).
Indian IT playbook derails
According to a Reuters report citing experts, the $283 billion Indian information technology sector is being forced to overhaul a decades-old strategy of rotating skilled talent into US projects due to the policy change. The September decision is now forcing IT firms with clients such as Apple, JPMorgan Chase, Walmart, Microsoft, Meta and Google to pause onshore rotations, accelerate offshore delivery, and ramp up hiring of US citizens and green card holders. Industry body Nasscom told the publication soon after the announcement that there may be “ripple effects on America’s innovation ecosystem” and disruption of business continuity for onshore projects.
Industry watchers predict that the Trump announcement will also accelerate the growth of US firms’ global capability centres or GCCs — which have evolved from low-cost offshore back offices to high-value innovation hubs that support operations, finance, research and development. India, currently home to more than half of the world’s GCCs, is projected to host more than 2,200 companies by 2030, with a market size nearing $100 billion and generating up to 2.8 million jobs, according to a Nasscom-Zinnov report released last year.
Indian IT stocks such as Infosys and TCS had seen sharp declines immediately after the announcement — with only partial recovery in the ensuing weeks. Both stocks remain below pre-announcement peaks — with analysts suggesting that a full recovery will hinge on legal outcomes and US client continuity
Legal hurdles
The imposition of a $100,000 H-1B visa fee has also sparked multiple lawsuits — with many insisting that Trump had exceeded presidential authority. Federal courts have denied preliminary injunction requests across all major cases. H-1B visa applicants currently face the additional fee — triggering a rush for L-1 alternatives and offshoring. The case remains in court with oral arguments set for December 19.
Additional scrutiny
H-1B visa applicants have also been facing additional checks from December 15 — including scrutiny of their social media activities. A recent order from the US State Department reiterated that all H-1B applicants and their dependents would have their social media profiles checked — mandating travellers to update privacy settings to make their accounts ‘public’. Several H-1B visa holders in India have already had their interviews rescheduled in the wake of these new guidelines.
“The United States must be vigilant during the visa issuance process to ensure that those applying for admission into the United States do not intend to harm Americans and our national interests, and that all applicants credibly establish their eligibility for the visa sought, including that they intend to engage in activities consistent with the terms for their admission,” the State Department said recently.
