A new analysis of Economic Innovation Group (EIG) data, which sheds light on the salaries of H-1B visa-holding Indian nationals in the United States, has disputed the popular claims raised by the Donald Trump administration that “cheap” Indian labour is displacing American workers. According to StudentEB5’s June 2026 report cited by Newsweek, Indian workers in the US have a median annual income of about $146,000, which is more than two-thirds higher than the median earnings of US-born college graduates.
The data also showed that Indian workers are actually posting some of the highest salaries in the US. The Economic Innovation Group’s February 2026 analysis of H-1B earnings further highlighted that the picture is much more nuanced than what the controversial debates surrounding the ‘specialty occupations’ work visa suggest.
While pointing out that older H-1B workers earn less than similar native-born workers and younger H-1B workers earn more, the EIG analysis noted that a majorly flawed report by Harvard economist George Borjas had influenced the $100,000 H-1B fee imposed by Trump in September 2025. Borjas, who previously served on the Trump administration’s Council of Economic Advisers, published an immigration paper in February, stating, “On average, H-1B workers earn 16% less than comparable natives, suggesting that firms may be willing to pay a one-time fee to obtain the visa.”
How much Indian H-1B workers earn in the US
EIG’s analysis found that H-1B workers aged 22-23, fresh out of college, earn more than 20% more than their native-born counterparts. Those who came to the US on student visas tend to earn more than their native-born counterparts.
“Those finishing Optional Practical Training (OPT) or graduate degrees in their mid-20s to early 30s still earn more, and the negative wage gap only emerges around age 34,” the EIG report stated. ” While 21-to-33-year-olds represent a minority of the overall labor force, H-1B holders skew younger due to program design: over two-thirds of lottery winners from FY2020 to FY2024 were 33 or younger.”
It further underscored that nearly 70% of these young H-1B workers had switched from F-1 status, adding that two-thirds of H-1B workers are skilled young professionals (mostly with American education) and their companies pay premium wages that exceed those of comparable native-born workers.
According to the StudentEB5 report cited by Newsweek, many international workers, especially Indians, are concentrated in higher-paying industries such as technology and engineering. It further drives overall earnings in such fields higher.
Sam Peak, policy manager at EIG, also told Newsweek that while most visa holders are paid more than their US-born counterparts, “On average, H-1B lottery winners make 5.1 percent less than US workers in the same occupation.” He emphasised that the gap was significantly contingent on age as well, with younger H-1B professionals mostly outearning Americans in such roles.
The US Department of Labor, on the other hand, has long reiterated that the agency is “committed to protecting wages and job opportunities for American workers.”
As the debate over H-1B visas persists in the US, various researchers have reached different conclusions, which only continues to fan the fire further. Global HR firm Deel’s data indicated that H-1B workers earn a median salary of about $140,000, compared with roughly $130,000 for Americans in similar positions.
Other arguments suggested that once occupation, experience, and location are factored in, H-1B workers may earn less than their US counterparts, Newsweek reported. However, Deel’s data, like EIG’s analysis, asserted that employers rely on the H-1B program to bring in specialised talent in tech-driven fields like software engineering and artificial intelligence instead of using it to reduce labour costs. It also emphasised that immigrant workers were, on average, about five years younger than American workers in similar occupations.
Given the data’s revelation that the youngest earn a wage premium compared to native-born workers, EIG contradicted Borjas’ analysis of a $100,000 fee, which the report suggested would penalise young workers and firms paying them more.
“Dr. Borjas’s policy would benefit firms who are underpaying older workers with worse long-run fiscal impacts,” EIG stated. “It is a bad conclusion from a paper with a variety of serious errors. Reforming the H-1B program is essential. But utilizing an age-and-cost-of-living adjusted wage ranking as proposed by EIG here would result in a more positive economic impact for the U.S. economy and its workers.”
Recent ruling on H-1B fee
Earlier this month, a federal judge struck down Trump’s $100,000 H-1B visa fee as “unlawful,” noting that Congress never authorised it. However, in a drastic update days later, the same federal court temporarily allowed US Citizenship and Immigration Services (USCIS) to continue collecting the fee after the government filed an appeal with the US Court of Appeals for the First Circuit.
In its appeals court filing, the Department of Homeland Security (DHS) emphasised that the federal judge was to determine the fee was an unauthorised tax and should be stayed pending appeal. The Trump admin officials argued that the one-time application fee wasn’t considered a tax, but even if it were, the POTUS would have proper authority to order it.
“Every day that passes more aliens can petition and enter the country despite the President’s determination that their entry would be detrimental,” the department said in its court filing. “And even if Defendants ultimately prevail on appeal, it will be difficult to revoke those visas and remove aliens who did not pay.”
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