For years, the H-1B visa system worked like a pipeline. It allowed companies in the US to bring in skilled professionals, many of them from India, who went on to power its tech industry. But a sharp rise in the cost of applying for these visas is now raising a basic question: will the best talent still choose America?
Experts say the impact could be significant. Immigration consultants point out that the H-1B program has long supplied American tech companies with top talent from India, particularly from Hyderabad, which has become a global hub for innovation. Many of the country’s tech CEOs started their careers there, making the city a “breeding ground” for skilled workers.
Speaking to CBS, Xavier Fernandes, founder of the immigration consultancy Y-Axis, explained that the H-1B program has been a crucial pipeline for Indian tech talent that drives innovation in the US. However, with the new $100,000 visa fee, many skilled professionals are now rethinking their plans and looking at other countries like Canada and Australia instead.
Why is the H-1B hike a loss for the US
Those who follow immigration trends say this could have a bigger impact than it seems at first. Speaking to CBS, Xavier Fernandes, who runs Y-Axis, said the H-1B system has played a huge role in building the US tech sector. “It’s definitely America’s loss,” he said. “…Many CEOs are from Hyderabad. It’s just a breeding ground of tech.”
There’s data to back that up. In 2024, more than 70% of H-1B visa holders were Indian. Fernandes put it this way: “Indians are the new oil, coal, or gas, it’s brain power to run the modern-day industries.” When asked if similar talent can be found locally, Fernandes added, “That kind of talent you can’t manufacture. It’s not a thing that you can get locally,” he said.
Even Donald Trump, in an earlier interview, had admitted, “you also do have to bring in talent.” When told that the US already has “plenty of talented people,” he replied, “No you don’t… You don’t have certain talents, and people have to learn.”
As things stand, many workers are no longer looking only at the US. Countries like Canada, China and Australia are making it easier to get in, hoping to attract the same skilled professionals.
“Many Indians will stay back and build in India,” Fernandes said. For a long time, the US was the obvious next step for top tech talent. Now, that certainty is slipping, and people are starting to look at the world a little differently.
$100,000 H-1B fee: A new US rule is quietly changing where tech talent wants to go
To understand what’s changing, you have to look at Hyderabad. Often called the “Silicon Valley of India,” the city has grown into a massive tech hub. Big names are everywhere, and for many young professionals, working here has always been step one.
“Google, Facebook, and all the other bigger companies are here,” Rajesh Jaknalli, who has been with a US tech firm in the city for close to ten years, told CBS. He explained how the place got its nickname. “This place is actually called High Tech City, but because of the many companies that we have, the term ‘Cyberabad’ has come.”
For him, and many others, the goal was never just to stay put. “Our dream was to perform, give you 100%, and then probably, we’ll get a chance to move to the US,” he said. “I’m currently applying to Australia,” he added. “The process is pretty straightforward there.”
Hameed Abdul, who works at Amazon in Hyderabad, had been counting on a move to the US at some point. After the announcement, he told CBS that the plan no longer felt realistic. “I got this news, and I was really devastated,” he said.
From where he stands, companies simply won’t go ahead with such a cost. “…It’s not beneficial for any employer, to be honest. Nobody’s going to hire you and give $100,000.” He has already decided what to do next. “I have decided to move to Canada,” he said.
That path hit a wall in September 2025. The Trump administration introduced a new fee of $100,000 for fresh H-1B visa applications. The reasoning was to protect jobs in the US. Earlier, the cost was somewhere between $1,700 and $4,500. The new rule wasn’t just an increase; it completely changed the math.