Trump’s H1B visa shock

New York/Washington: Ina sudden move that will hugely impact skilled Indian professionals in the US, President Donald Trump has ordered a steep hike in the annual H1B non-immigrant visa fee to USD 100,000. As the Presidential proclamation that takes effect at 12.01 am EDT on September 21 sparked panic and outcry, Immigration attorneys and companies asked the H1B visa holders or their family members currently outside America for work or vacation to return within the next 24 hours or risk being stranded and denied entry into the US.

There were reports of Indian professionals who were heading home for festivities disembarking from aircraft at the San Francisco International Airport after Trump's announcement to overhaul H1B visa programme for high-skilled foreign workers. Trump on Friday signed the proclamation ‘Restriction on entry of certain non-immigrant workers', saying the abuse of the H1B visa programme is a "national security threat", a decision that came as a rude shock to Indian and American technology companies and also caused uncertainty to foreign professionals, especially in the Information Technology (IT) sector.

Indians make up an estimated 71 per cent of all approved H1B applications in recent years, according to US Citizenship and Immigration Services (USCIS). China is the next biggest group. The Trump administration's action that will significantly affect Indian technology professionals who are hired by tech companies and others on H1B visas comes at a time just as the India-US trade talks appeared to regain momentum.

Commerce Minister Piyush Goyal is expected to visit the US next week.

Currently, the H1B visa fee that companies pay to sponsor H1B applicants ranges from about USD 2,000 to USD 5,000, depending on employer size and other costs. The H1B visas, which are very popular among Indian tech professionals, are valid for three years and can be renewed for another three years. Industry body Nasscom on Saturday said the US move will impact India's technology services companies as business continuity will be disrupted for onshore projects that may require "adjustments". The Indian apex body also flagged concerns over the September 21 timeline for implementation, saying a one-day deadline creates considerable uncertainty for businesses, professionals, and students across the world. The US move will impact Indian nationals that are on H1B visas working for global and Indian companies, it said in a statement.

The Indian government said this measure is likely to have humanitarian consequences by way of disruption for families. Congressman Raja Krishnamoorthi described the H-1B visa fee hike as a "reckless attempt to cut America off from high-skilled workers who have long strengthened our workforce, fuelled innovation, and helped build industries that employ millions of Americans."

Ajay Bhutoria, a former advisor to President Joe Biden and Asian-American community leader on immigration policy, warned of a potential crisis for the US technology sector's competitive edge with Trump's decision on the H1B visa fee. "The H1B programme, a lifeline for innovation that has attracted top talent from around the world, faces unprecedented barriers with this massive jump from the current USD 2,000-USD 5,000 total fee, which will crush small businesses and startups reliant on diverse talent,” he said.

Tata Consultancy Services (TCS) is the second-highest beneficiary with 5,505 approved H1B visas in 2025, after Amazon (10,044 workers on H1B visas), according to the US Citizenship and Immigration Services (USCIS). Other top beneficiaries include 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).

In his proclamation, Trump said the H1B visa programme was created to bring temporary workers into the US to perform additive, high-skilled functions, but it has been deliberately exploited to replace, rather than supplement, American workers with lower-paid, lower-skilled labour. "The abuse of the H1B programme is also a national security threat. Domestic law enforcement agencies have identified and investigated H1B-reliant outsourcing companies for engaging in visa fraud, conspiracy to launder money..., and other illicit activities to encourage foreign workers to come to the US."

Trump said that it is necessary to impose higher costs on companies seeking to use the H1B programme to address the abuse of that programme while still permitting companies to hire the best of the best temporary foreign workers. Trump ordered that the Secretary of Homeland Security shall restrict decisions on petitions not accompanied by a USD 100,000 payment for H1B speciality occupation workers, who are currently outside the US, for 12 months following the effective date of the proclamation, which is September 21, 2025.