Trump Hikes H-1B Visa Fee to $100,000, Sending Shockwaves Through Tech Industry

— by vishal Sambyal

 President Trump raises H-1B visa fees to $100,000 annually, impacting Indian IT workers and reshaping US tech hiring policies.

A Policy Jolt for Global Tech Talent

In a dramatic policy move, US President Donald Trump has signed a proclamation raising the annual fee for H-1B visas to an unprecedented $100,000. The decision, announced on September 19 and effective from September 21, has sent shockwaves across the global technology industry. With nearly three out of four H-1B holders hailing from India, the policy threatens to upend the dynamics of international talent migration, especially in the high-demand STEM fields.

The H-1B Visa: A Gateway for Global Talent

The H-1B visa program was originally designed to allow US companies to hire skilled foreign workers for specialized roles in engineering, computer science, medicine, business, education, and the arts.

  • The visa is initially valid for three years, extendable up to six.
  • A cap of 65,000 visas is issued annually, with an additional 20,000 spots for advanced degree holders from US universities.
  • Major US tech firms rely heavily on this program. As of mid-2025, Amazon employed 10,044 H-1B visa holders, followed by TCS (5,505), Microsoft (5,189), Meta (5,123), and Google (4,181).

In 2024, the US approved around 400,000 H-1B visas, two-thirds of them renewals. With the new fee hike, the cost of employing foreign talent will soar—creating uncertainty for both employers and employees.

Why the Trump Administration Raised the Fee

The White House argues that the H-1B program, intended to supplement the American workforce with highly skilled labor, has been exploited by outsourcing firms to undercut wages and replace US workers.

Key concerns outlined by the administration include:
  • Wage suppression: Employers hiring foreign workers at lower salaries compared to US citizens.
  • STEM job displacement: Between 2000 and 2019, the number of foreign STEM workers doubled to 2.5 million, while overall STEM employment grew by just 44.5%.
  • IT dominance: The share of IT roles in H-1B approvals surged from 32% in 2003 to over 65% in the last five fiscal years.

“By raising the cost barrier, we aim to ensure that H-1B visas go to the most qualified foreign professionals while protecting opportunities for American graduates,” a senior administration official stated.

Reactions from the Tech and Policy Community

The announcement sparked immediate debate in Washington and Silicon Valley.

  • Tech industry concerns: A senior executive at a leading US tech giant warned, “This policy risks creating a talent bottleneck. Skilled professionals may now look to Canada or Europe instead of the US.”
  • Indian IT backlash: NASSCOM, the trade body representing India’s IT sector, called the move “punitive and protectionist”, predicting massive disruptions for outsourcing firms that depend on H-1B workers.
  • Policy analysts divided: While some economists argue the policy could boost hiring of American workers, others warn it may accelerate the offshoring of tech jobs, undermining the US innovation ecosystem.

The “Gold Card”: A New Elite Pathway

Alongside the H-1B fee hike, Trump signed an executive order establishing the “Gold Card” visa program.

  • Foreign individuals of “extraordinary ability” who pay $1 million to the US Treasury—or $2 million if sponsored by a corporation—will receive expedited visa processing and a pathway to a Green Card.
  • The initiative appears to favor wealthy entrepreneurs, investors, and innovators, signaling a shift toward a “pay-to-play” immigration framework.

While the H-1B hike restricts access for middle-class professionals, the Gold Card offers a premium fast-track option for the wealthy—a contrast that critics say reflects an uneven immigration policy.

Implications for Indian Workers and Global Companies

The impact of this policy will be most severe for Indian professionals, who make up 75% of H-1B visa holders.

  • For Indian workers: The $100,000 fee is unaffordable for individuals, leaving them reliant on employer sponsorship. However, US firms may reduce sponsorships due to rising costs.
  • For US companies: Tech giants that rely heavily on H-1B talent may face a shortage of specialized skills, slowing innovation. Smaller firms and startups may be unable to compete at all.
  • For global labor mobility: Countries like Canada, Australia, and the UK, which already have friendlier visa regimes, may attract top-tier talent away from the US.

Looking Ahead

As the fee hike takes effect, the consequences will ripple through global labor markets, cross-border business strategies, and US-India relations. While the Trump administration frames the move as protectionist reform, critics fear it could diminish America’s competitive edge in innovation and technology.

The coming months will reveal whether this bold policy reshapes the job market in favor of American workers—or whether it triggers a brain drain that benefits America’s rivals.

This article is for informational purposes only. Policy details are based on official announcements as of September 2025.