H-1B visa fee: US President Donald Trump has signed a new proclamation introducing major changes to the H-1B visa program, including a $100,000 fee. Trump and US Commerce Secretary Howard Lutnick asserted that the new $100,000 H-1B visa fee would function as a recurring annual fee. In reality, the proclamation does not refer to such a yearly payment; instead, it specifies that the order is valid for 12 months and will be subject to review afterwards. The fee only applies to applications filed after September 21 and would be paid by the employers on behalf of the workers they employ from outside the United States.
The H-1B scheme was originally designed to allow US companies to hire highly skilled foreign professionals for jobs that American workers or permanent residents cannot fill. However, it has increasingly been used to bring in overseas employees willing to accept salaries around $60,000 a year, well below the six-figure pay that many US tech workers typically earn.
After Trump’s proclamation order, titled “Restriction on entry of certain non-immigrant workers”, went out, many are seemingly not happy with the visa fee. While some tagged it as “reckless”, others said that it would crush the “businesses and startups”. Many even said that the “American dream for Indians is over now”.
‘$100,000 H-1B fee is reckless’
Congressman Raja Krishnamoorthi said that Trump should not “erect barriers” that weaken the country’s economy and security but should “modernise” the immigration system, tagging the $100,000 visa fee as “reckless”.
“[It is a] reckless attempt to cut America off from high-skilled workers who have long strengthened our workforce, fuelled innovation, and helped build industries that employ millions of Americans,” Krishnamoorthi said.
He added, “While other nations race to attract global talent, the United States should strengthen its workforce and modernise our immigration system, not erect barriers that weaken our economy and security.”
‘It would crush the businesses and startups’
Ajay Bhutoria, former advisor to Joe Biden, said that the sweeping changes in the visa policy would have a colossal impact on small businesses and startups.
“The H-1B programme, a lifeline for innovation that has attracted top talent from around the world, faces unprecedented barriers with this massive jump from the current USD 2000-USD 5000 total fee, which will crush small businesses and startups reliant on diverse talent,” Bhutoria said.
He added that the move will drive away skilled professionals who power Silicon Valley and contribute billions to the US economy. Bhatoria believes that the move will push talent to Canada or Europe. He called for a merit-based selection instead of “this extreme overhaul”.
“The text says it’s one time per petition at the time of filing. So Lutnick didn’t even know what it said? Per my reading of this, it isn’t per year and wouldn’t apply to transfers either,” Sheel Mohnot, founder of two companies that he later sold, said.
‘Very unfortunate policy’
Khanderao Kand, from the Foundation for India and Indian Diaspora Studies, also sounded off alarm for the businesses, especially the software and technology sector. He called the H-1B fee “a very unfortunate policy”.
Deedy Das, who is a partner at Menlo Ventures, listed several pointers from the executive order, adding that it is in contradiction to what Lutnick said at the White House press briefing. Lutnick said that the fee would be for a total of six years, which means that it will be a hundred thousand dollars a year. However, the official document doesn’t mention this.
‘American dream is now over for Indians’
Several social media users also shared their thoughts on the H-1B visa.
One individual, Navroop Singh, said that the “American dream is now over for Indians”, adding that the “H-1B hiring by Indian IT companies was already on decline”.
“There is a doctor shortage in the US right now. Every year, hundreds of doctors get H-1B visas to help fill those gaps. If hospitals had to pay an additional $100,000 fee, it’s possible they would simply give up and not even try to fill positions,” posted another, who is a senior fellow at the American Immigration Council.
“It’s a fundamental & structural change of the relationship between India & USA. H-1B still says wages are higher, so are the entry fees. H1B was used not only for tech but also for Healthcare workers & other skill sets. The American dream is now over for Indians. GCCs will supplant H1B demand. H1B hiring by Indian IT companies was already in decline. Trump has now deployed the full arsenal to bend India for a deal & one last card is left, i.e. Department of Justice enquiry on Adani Group!” he wrote on X (formerly Twitter).
Another added, “Trump just killed the American economy by imposing a $100K fee for H-1B visa!”
“Does Trump’s new $100k H-1B fee shift more to outsourcing just shift H-1B workers?” asked a third.