Trump admin's $100K H-1B visa fee hike could hit US doctors, hospitals

The Trump administration has announced a $100,000 annual H-1B visa fee hike; visa quotas remain unchanged at 65,000 for regular applicants and 20,000 for advanced degree holders

The Trump administration’s announcement of a $100,000 annual fee hike for H-1B visas is expected to significantly impact hiring of skilled foreign workers, especially in sectors like healthcare and IT, as it would raise the costs for employers, making the H-1B programme practical only for high-value roles.

 

Commerce Secretary Howard Lutnick described the move as a strategy to limit entry-level training roles while still allowing highly skilled professionals to enter the US. “A company that wants to buy an H-1B visa... it’s $100,000 per year,” Lutnick said. The visa will continue to be valid for three years, renewable once, for a total of six years. 

 

   

Severe implications for the medical sector

 

Doctors and hospitals are bracing for the impact. Currently, over 30 per cent of medical residents in the US are international graduates, and around 10,000 of 43,000 residency spots are filled by H-1B visa holders.

 

Previously, H-1B visa fees were under $5,000. This suggests that a hospital might not be willing to pay a $100,000 fee for a resident who earns somewhere around $55,000. The increase could aggravate staffing shortages in the US healthcare system and put patient care at risk.

 

“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.”   

 

Huge cost increase could limit applications

 

The new policy dramatically raises costs for employers, making the H-1B programme practical only for high-value roles. Companies will still pay other vetting charges, and the administration has not yet decided whether the $100,000 fee will be collected upfront or annually.

 

Visa quotas remain unchanged at 65,000 for regular applicants and 20,000 for advanced degree holders, but officials predict a decline in applications due to the high costs.

 

“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 explained.

 

The Department of Homeland Security plans stricter checks alongside the fee hike, which will take effect in the coming weeks. Existing visa holders could face higher fees upon renewal.

 

H-1B doctors in the US: By the numbers

 

Data from the US Department of Labour’s Office of Foreign Labour Certification shows that in 2016, approximately 10,500 H-1B physician positions were certified nationwide.

 

• H-1B applicants made up 1.4 per cent of the active US physician workforce

• New York had the largest number of applicants (1,467), followed by Michigan and Illinois

• The top four sponsoring employers — William Beaumont Hospital, Bronx-Lebanon Hospital Center, Cleveland Clinic, and Presence Saint Francis Hospital — accounted for 10 per cent of physician applications   

 

Impact on Indian IT firms

 

India is the largest beneficiary of H-1B visas, representing 71 per cent of approvals last year. The new fee could hit IT firms like Infosys, TCS, and Wipro, which send junior and mid-level engineers to the US for projects.

 

Amazon leads with 10,044 H-1B visa holders, followed by TCS (5,505), Microsoft (5,189), Meta (5,123), Apple (4,202), Google (4,181), Deloitte (2,353), Infosys (2,004), Wipro (1,523), and Tech Mahindra Americas (951), according to a report by news agency PTI.

 

“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 under the new rules.

 

Lawmakers and community leaders voice concern

 

The policy has drawn criticism from US lawmakers and immigration advocates. Congressman Raja Krishnamoorthi called it “reckless”, warning it could cut the US off from high-skilled talent essential for innovation and job creation.

 

Ajay Bhutoria, former advisor to President Joe Biden, cautioned that the hike could “crush small businesses and startups reliant on diverse talent” and push skilled workers to Canada or Europe, weakening America’s competitive edge.

 

(With agency inputs)