Trump admin to hike H-1B visa fees to $100,000: All you need to know

Trump administration clarified that visa quotas are not changing; the annual limit remains 65,000 regular visas plus 20,000 for advanced degree holders from US universities

The Trump administration on Friday unveiled a sweeping change to the highly-sought after H-1B visa programme, introducing a $100,000 annual fee for each person that is approved. The move is expected to reshape how American companies hire skilled foreign workers, and will particularly affect Indian IT professionals, who form the single-largest cohort of beneficiaries.

 

Commerce Secretary Howard Lutnick announced the new structure during a press briefing, calling it a deliberate strategy to curb entry-level training roles while keeping opportunities open for highly-skilled workers.

 

“A company that wants to buy an H-1B visa... it’s $100,000 per year,” Lutnick said. The visa will continue with its current structure: valid for three years with the option to renew once, for a total of six years.    

 

 

Dramatic increase in costs

 

Currently, H-1B applications cost only a few thousand dollars. The new policy makes the programme viable only for high-value roles that justify the steep expenses. Companies will also continue to pay existing vetting charges, while the government decides whether the new fee will be collected upfront or annually.

 

“No longer will you put trainees on an H-1B visa — it’s just not economic anymore,” Lutnick said. “If you’re going to train people, you’re going to train Americans.”     

 

Visa caps remain the same

 

The administration, however, clarified that there will be no changes in the H-1B visa quota. The annual limit remains 65,000 regular visas, with an additional 20,000 spots for advanced degree holders from US universities. However, officials expect fewer applications because of the high cost.

 

“Remember, these are the same cap, it’s the same visa. There’ll just be less of them issued because they used to be free, and now they cost $100,000,” Lutnick said.

 

Rollout and new vetting procedures

 

The Department of Homeland Security will introduce stricter checks alongside the new fees. While no date has been confirmed, the administration said the rules will take effect within weeks. Existing visa holders could face higher fees when applying for renewals.

 

Officials argue the fee hike will both generate revenue and protect American workers by discouraging companies from using cheaper foreign labour. “The idea is to bring in high earners, people with money,” Lutnick added.  Recently, the Trump administration also ended the third-country stamping provision, which allowed H-1B visa holders, among others, to get their visas in a location other than their home country.   

 

Impact on Indian IT companies

 

The change will certainly hit Indian IT services firms such as Infosys, TCS, and Wipro, which often send junior and mid-level engineers to the US for client projects. Indian nationals account for most H-1B approvals, and their companies are among the largest sponsors of the programme, news agency ANI reported.

 

“If you have a very sophisticated engineer and you want to bring them in because they have expertise, then you can pay $100,000 a year for your H-1B visa,” Lutnick said, indicating that only senior-level professionals are likely to benefit going forward.

 

Lawmakers and community leaders react

 

The announcement has sparked criticism from US lawmakers and immigration advocates, who warn of serious damage to the technology sector.

 

Congressman Raja Krishnamoorthi called the plan “reckless” and said it would cut America off from high-skilled workers who have long contributed to innovation and job creation.

 

“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,” he said, as quoted by PTI.

 

Ajay Bhutoria, former advisor to President Joe Biden and a prominent Asian-American community leader, said the hike could “crush small businesses and startups reliant on diverse talent”. He warned it may drive skilled professionals to Canada or Europe, undermining America’s competitive edge.     

 

Trump’s ‘Gold Card’ visa for wealthy immigrants

 

Alongside the H-1B overhaul, Trump also announced a new “Gold Card” visa designed to attract wealthy individuals willing to pay millions for US residency.

 

“They’re going to spend a lot of money to come in. It’s going to raise billions of dollars... which is going to go to reduce taxes, pay off debt and for other good things,” Trump said.

 

The programme offers different levels of access: a $1 million “Gold Card” for residency, and a $5 million “Platinum Card” allowing up to 270 days in the US without being taxed on foreign income. The scheme will be rolled out by the Commerce, State, and Homeland Security departments within 90 days.

 

What is an H-1B visa?

 

The H-1B visa allows US companies to hire foreign professionals in specialised fields such as IT, engineering, finance, science, and medicine.

 

• Valid for up to six years (initial three years, plus one renewal)

• Requires employer sponsorship

• Provides benefits such as a Social Security number, driver’s licence, and property rental or purchase rights

 

(With agency inputs)