H1B Visa News: In a decision that could hit thousands of Indian IT professionals, US President Donald Trump has announced a massive hike in the H-1B visa sponsorship fee. From now, American companies will
have to pay USD 100,000 (around ₹90 lakh) per year to sponsor an H-1B visa applicant.
Aim: Protect American Jobs, Says White House
According to the White House, the move is designed to ensure that only “highly skilled and extraordinary” workers are hired from abroad, while preventing the replacement of American workers. Officials argued that the programme will also raise more than USD 100 billion for the US treasury.
White House Staff Secretary Will Scharf stated, "One of the most abused visa systems is the H1-B non-immigrant visa programme. This is supposed to allow highly skilled labourers who work in fields that Americans don't work in to come into the United States of America. What this proclamation will do is raise the fee that companies pay to sponsor H-1B applicants to $100,000. This will ensure that the people they're bringing in are actually very highly skilled and that they're not replaceable by American workers," according to a report by ANI.
Why Indians Will Be the Worst Hit
Indians have been the largest beneficiaries of H-1B visas, accounting for nearly 71% of all approvals in recent years, while China is a distant second. With Indian IT professionals forming the backbone of the US tech workforce, this fee hike is expected to discourage companies from sponsoring Indian talent, especially mid-level employees.
Visa Backlogs to Worsen
H-1B visas are issued for three years and are extendable for another three. Many Indian professionals also rely on employer-sponsored green cards for permanent residency. But with the decades-long backlog for Indians, the new annual cost may force companies to rethink long-term sponsorship.
Additional Hurdles in US Immigration
The Trump administration is not stopping at H-1B reforms. From October 2025, citizenship applicants will face a more demanding test with 128 questions, of which at least 12 must be answered correctly out of 20. Additionally, the US State Department has directed that all applicants for visas, including H-1B, F1 (students), and B1/B2 (visitor), must now apply from their country of residence or citizenship, tightening the process further.
India’s IT Industry on Edge
India’s $245 billion IT services industry, which depends heavily on US clients and workforce mobility, is likely to face higher costs and increased visa uncertainties. Experts warn that small and mid-sized Indian IT firms may find it unviable to send employees to the US, pushing them to rely on local hires instead.
What Lies Ahead for Indian Professionals?
With this fee hike and tougher visa norms, Indian professionals may face limited opportunities in the US. The policy shift signals that America wants to attract only “extraordinary talent,” making it harder for average applicants. For many Indians, the dream of working in the US may soon become costlier and more uncertain than ever before.
