In a significant policy shift, U.S. President Donald Trump has mandated a substantial $100,000 fee for specific H-1B visa applications, effective September 21. This measure is part of a broader effort to reform the H-1B visa program, with the administration citing concerns about its overuse and a desire to bolster employment for American citizens.
The U.S. Commerce Secretary stated that this policy aims to encourage companies to hire American talent, potentially impacting foreign workers, especially those from India, who constitute a large percentage of H-1B visa holders. President Trump’s proclamation pointed to “systemic abuse” of the H-1B system, particularly by IT outsourcing firms, and characterized the misuse as a “national security threat.” He further expressed that the program’s exploitation makes it harder for American graduates to find IT jobs, as employers can hire foreign workers at a lower cost.
Immigration lawyers suggest that while the fee might not lead to immediate deportations, it could significantly limit job mobility and increase renewal costs for Indian tech workers in the U.S. This uncertainty may push some Indian professionals to consider other countries like Canada, the UK, the UAE, or Saudi Arabia.
Currently, the H-1B visa, established by Congress in 1990, allows U.S. companies to hire foreign workers for specialized roles requiring at least a bachelor’s degree. These visas are typically granted for three years and can be extended for another three. The program has an annual limit of 65,000 visas, with an additional 20,000 reserved for those with master’s or doctoral degrees from U.S. universities. Indian tech professionals have consistently been among the largest recipients, reflecting the demand for their skills.
However, the H-1B program has faced criticism from various political figures. Vice President JD Vance, for instance, has voiced concerns about tech companies laying off American employees while simultaneously seeking foreign worker visas. He emphasizes the need to prioritize American talent and ensure that foreign workers supplement, rather than supplant, the U.S. workforce, a sentiment echoed by USCIS Director Joseph Edlow.
Despite some internal debate within Trump’s coalition, with figures like Steve Bannon and Laura Loomer opposing the program, President Trump himself has expressed support for H-1B visas, noting their use in his own properties.