New $100,000 H-1B Visa Fee: Impact on Indian IT & Professionals

On September 19, 2025, U.S. President Donald Trump signed a proclamation imposing a $100,000 annual fee on new H-1B visa applications, effective from September 21. This policy shift has sent ripples through the global tech industry, particularly impacting Indian IT professionals and companies.

Understanding the $100,000 H-1B Visa Fee

The newly introduced fee mandates that companies sponsoring new H-1B visa applicants must pay a one-time $100,000 fee per petition. This fee applies exclusively to new applicants and does not affect existing visa holders or those renewing their visas. The policy aims to reduce the influx of foreign labor into the U.S. tech sector, citing concerns over rising unemployment among American tech graduates.

Impact on Indian IT Companies of New H-1B Visa Fee

1. Increased Operational Costs

Indian IT giants like Tata Consultancy Services (TCS), Wipro, and Infosys heavily rely on the H-1B visa program to staff projects in the U.S. The new fee significantly raises the cost of doing business in the U.S., potentially leading to increased project costs and reduced profit margins. For instance, TCS secured over 5,500 H-1B visa approvals in 2025, making it the second-largest recipient after Amazon.

2. Strategic Shifts in Business Models

To mitigate the impact, Indian firms may accelerate their efforts to hire locally in the U.S. This shift could lead to increased hiring costs and challenges in maintaining the quality of services. Additionally, some companies might explore alternative visa categories or consider offshoring projects back to India to circumvent the new H-1B Visa fee.

3. Market Volatility

The announcement has led to fluctuations in the stock prices of Indian IT companies. For example, Wipro’s stock price experienced a decline following the news, reflecting investor concerns over the potential impact on the company’s operations and profitability.

Reactions from Indian IT Professionals on New H-1B Visa Fee

1. Uncertainty and Anxiety

The sudden announcement has left many Indian IT professionals in the U.S. uncertain about their future. Concerns over job security and visa status have led to increased anxiety among workers. Some professionals have even altered their travel plans, with reports of individuals disembarking from flights mid-journey due to confusion over the new policy.

2. Impact on Families

The policy raises concerns about the separation of families, as individuals may be forced to choose between staying in the U.S. or returning to India. The Indian Ministry of External Affairs has expressed apprehension over the “humanitarian consequences” of the policy, emphasizing the potential disruption to families.

Broader Implications

1. Impact on U.S. Innovation

Tech companies like Microsoft, Amazon, and JPMorgan have expressed concerns that the new fee could stifle innovation by limiting access to a diverse talent pool. The added costs may discourage companies from sponsoring H-1B visas, potentially leading to a talent shortage in the U.S. tech industry.

2. Global Repercussions

The policy has sparked reactions from other countries, with some governments expressing concern over the potential impact on their citizens working in the U.S. For instance, South Korea’s foreign ministry stated that it would “comprehensively assess the impact” of the new measure on its professionals in the U.S.

Looking Ahead

While the $100,000 H-1B visa fee presents significant challenges, it also opens opportunities for Indian IT companies to strengthen their presence in the domestic market. By investing in local talent and infrastructure, companies can reduce their reliance on foreign labor and adapt to the changing global landscape.

Conclusion

The imposition of a $100,000 fee on new H-1B visa applications marks a pivotal moment for Indian IT professionals and companies. While the immediate effects are disruptive, they also serve as a catalyst for transformation and adaptation in the global tech industry.

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Prashant

Hi, I’m Prashant Jain — a curious soul, storyteller, and content creator at heart.I’ve always been drawn to the world of entertainment, travel, sports, health & lifestyle — not just as a writer, but as someone who genuinely lives these experiences. Whether I’m binge-watching the latest OTT series, exploring offbeat spiritual destinations in India, or diving deep into wellness routines and cricket match insights, I love sharing what I discover with like-minded readers.
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