$1 million for 10 H-1B visa workers: What Trump's order means for US firms

Trump raised the H-1B visa fee to $100,000 citing US job losses, but experts say mass displacement is a myth, with 96% of US software developers employed

The H-1B visa programme, long considered the backbone of America’s skilled migration system, has just undergone a drastic change. On Friday, US President Donald Trump signed an executive order raising the fee for each H-1B visa from $4,500 (about Rs 400,000) to $100,000 (about Rs 90 lakh).

 

The rule takes effect on September 21 and will apply for 12 months unless extended. For employers, the numbers are stark — hiring 10 Indian workers will now cost $1 million, or Rs 8.8 crore.

 

The new fee will:

• Sharply increase hiring costs for US companies

• Disrupt workforce planning and recruitment

• Redirect talent towards other countries

 Why has Trump raised the H-1B fee?

 

Trump accused IT outsourcing firms of “systemic abuse” of the H-1B programme and branded it a “national security threat.”

 

“Further, the abuse of the H-1B visa programme has made it even more challenging for college graduates trying to find IT jobs, allowing employers to hire foreign workers at a significant discount to American workers,” his proclamation reads.

 

'H-1B visa holders replacing American workers is a myth'

 

David Bier of the libertarian Cato Institute strongly rejected the idea that American workers were being displaced. Writing on X, he said, “We have a complete fabrication. The employment rate for US-born software developers is 96 per cent. Mass displacement is a MYTH. It is between unicorns and fairy dust, and the unemployment rate and H-1B requests move in opposite directions.”

 

Pointing to official job data, Bier added, “The US unemployment rate is a mere 3.02 per cent. I love the two decimal places! It’s an absolute apocalypse out there. 97 per cent are employed, yet somehow it’s H-1Bs’ fault it has risen a staggering 1.04 points in 6 years? Were there no H-1Bs in 2019?”

 

He gave a practical example: “I know a group of H-1B workers who contracted with a US car firm to fix their car software, this enabled the cars to get to market faster, increasing sales and resulting in more US worker jobs.”

 

In August, David Leopold, former president of the American Immigration Lawyers Association, in a blog post, warned that the order would hurt smaller employers most. He said it would “send less valuable foreign workers back to their home countries.”

 

What does this mean for Indians in the US?

 

Atal Agarwal, an Indian tech professional in San Francisco, said America’s edge was always about its people, not its geography. “Take away the people, and you’re just expensive real estate with high taxes. Geography isn’t destiny. Talent is,” he wrote on X.

 

Former NITI Aayog CEO Amitabh Kant echoed that thought, arguing the change could benefit India. “Donald Trump’s 100,000 H-1B fee will choke U.S. innovation, and turbocharge India’s. By slamming the door on global talent, America pushes the next wave of labs, patents, innovation and startups to Bangalore and Hyderabad, Pune and Gurgaon,” he wrote on X.

 

“India’s finest doctors, engineers, scientists, innovators have an opportunity to contribute to India’s growth & progress towards #ViksitBharat. America’s loss will be India’s gain,” he added.

 

Can Trump legally impose this fee?

 

Immigration attorney Charles Kuck, founding partner at Kuck Baxter Immigration in Atlanta, told Business Standard the move is vulnerable to legal challenge.

 

“The President cannot impose it for a variety of reasons, but all going back to the basic fact that only Congress can authorise fees,” said Kuck.

 

“Employers and workers are working on a suit now and we believe there’s an excellent chance that a court could block the order through an injunction,” he said. According to him, visa fees are intended to cover processing costs, not serve as barriers. 

 

What are H-1B visas and who gets them?

 

The H-1B visa allows US employers to temporarily hire foreign professionals in specialty occupations that require advanced degrees or specialised training.

 

• Most holders work in technology, engineering, and STEM roles

• Visas are initially issued for three years, renewable for another three

• With employer sponsorship, many transition to permanent residency

 

Congress caps the number of new visas at 85,000 each year, including 20,000 for workers with advanced US degrees. According to Pew Research Center, about 400,000 H-1B applications, including renewals, were approved in 2024.

 

India is the top source country, followed by China. Tech majors such as Amazon regularly feature among leading employers, with New York, San Francisco and other metro areas seeing the largest clusters of approvals.