US President Donald Trump’s announcement of a $100,000 annual fee on every H-1B visa application has triggered concern across the United States and India. Indians, the largest recipients of these visas, stand to be the most affected. The move comes amid growing hostility towards Indian workers in America, but it has also drawn support for their contribution to the US economy.
What Trump’s $100,000 H-1B visa fee means for Indians
The order, signed on September 19, raises the cost from the existing $4,500 to $100,000 (about Rs 90 lakh) per application. For many companies, this could increase hiring costs by several million dollars.
Indians account for more than 70 per cent of all H-1B visa holders. Traditionally, Indian IT firms such as TCS, Infosys and Wipro have sent workers onshore to the US to work for clients, with many later moving to permanent residency.
Since Trump’s second term began in January 2025, his supporters have turned their focus on Indian workers. Conservative activist Charlie Kirk, who was killed on September 10, had written days before, “America does not need more visas for people from India. Perhaps no form of legal immigration has so displaced American workers as those from India. Enough already. We’re full.”
Florida Governor Ron DeSantis called the H-1B programme a “total scam”, alleging that it allows firms to replace Americans with cheaper labour. “Most of them (H-1Bs) are from one country, India, there’s a cottage industry about how all those people make money off this system,” he said in a Fox News interview.
"Indians face discriminatory treatment"
David Bier of the libertarian Cato Institute wrote in India's defence on X, “Indian H-1Bs contributed an unfathomable amount to America: 100s of billions in taxes, 10s of billions more in fees, trillions in services. Among the most peaceful, intelligent, interesting people to grace our shores. And what do we give back? Demonization and discrimination.”
He added, “We have a set of laws mandating discriminatory treatment at every stage of the legal immigration process, particularly for Indians. They’ve been barred from adjusting to permanent residence for decades based on nothing more than their birthplace.”
Alex Nowrasteh, also from the Cato Institute, posted, “It’s abominable how this government treats Indians. Some of the most peaceful, hard working, intelligent, and successful people in history. The highest incomes, lowest incarceration rates, and incredible entrepreneurs. We’re lucky to have them and our government just hates.”
Doctors warn medical system could collapse under new visa costs
Experts fear the health sector will be hit hard. “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,” said Aaron Reichlin-Melnick, senior fellow at the American Immigration Council.
Nicholas Mark, a Seattle-based pulmonologist, warned, “This will be absolutely devastating in the medical field. About 30 per cent of residents are international medical graduates and 10,000 of 43,000 residency spots are filled by doctors with H-1B visas. No hospital will pay a $100,000 fee for a $55,000 resident salary.”
Lawyers say fee traps H-1B workers inside the US
US immigration attorney Anna K. Gorisch explained that many H-1B applications are “change of status” cases, such as students shifting from F-1 visas. “A change of status requires no visa, thus no $100,000 visa fee. But if the H-1B worker travels internationally, the fee will apply, leaving them effectively trapped in the US,” she on X.
She added that this includes “every H-1B physician with expertise where it is rare, every researcher advancing cures for cancer, biomedical engineers advancing diagnostics, and developers who build cybersecurity infrastructure.”
Experts call out America’s failure to invest in STEM
US-based data scientist Bojan Tunguz argued that the decision reflects deeper failings. “The future historians will point to this moment as the beginning of the end of the US scientific and technological dominance,” he said.
Others said the US should have invested in science, technology, engineering and maths education over the past three decades, much like China.
Nasscom says India’s IT services companies will feel the heat
Indian IT industry body Nasscom acknowledged the challenge. “It will impact Indian nationals that are on H-1B visas working for global and Indian companies. India’s technology services companies will also be impacted as business continuity will be disrupted for onshore projects which may require adjustments,” the body said in a statement.
Amitabh Kant says America’s loss will be India’s gain
Amitabh Kant, former G20 sherpa and ex-CEO of Niti Aayog, wrote on X, “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. India’s finest doctors, engineers, scientists, innovators have an opportunity to contribute to India’s growth and progress towards #ViksitBharat. America’s loss will be India’s gain.”
US officials defend move as protection for American jobs
US commerce secretary Howard Lutnick told reporters the fee would push firms to hire more Americans. He said it would also send “less valuable foreign workers back to their home countries.”
Trump accused IT outsourcing firms of “systemic abuse” of the H-1B programme and called it a “national security threat.”