H-1B Visa Shocker: Trump’s $100,000 Fee & What It Means for Indians

Last week, in a bold and controversial move, President Donald Trump signed a proclamation imposing a $100,000 fee on new H-1B visa applications.  That’s a massive leap from the earlier fee structure (which was in the low thousands). 

Predictably, this has sent shockwaves through the global tech community — and especially among Indian professionals, who make up a significant share of H-1B visa holders. 

Let’s break down what’s happening, what’s at stake, and how Indians may be affected going forward.

What Exactly Changed?

• The new rule introduces a $100,000 one-time fee for every new H-1B petition. 

• This jump is not incremental — it’s several times the previous cost (which ranged from $2,000 to $5,000 depending on employer size and other factors). 

• The policy applies to new applications, not renewals. 

• The rationale from the administration is to curb misuse of the visa system, incentivize companies to hire more American workers, and reduce reliance on foreign talent. 

Why This Hits India Hard

1. India Dominates H-1B Recipient Pool

Indian nationals make up around 70–71% of H-1B visa holders.  That means this sweeping change disproportionately affects Indians working or planning to work in the U.S.

2. Tech & IT Services at Risk

Indian IT firms have long leveraged H-1B routes to send engineers to U.S. clients or projects. With such a steep cost, many use cases become unviable. 

3. Talent Flow May Reverse

Some Indian professionals may reconsider going to the U.S. altogether. Others might return home, bringing skills, capital, networks, and entrepreneurial ambitions with them. 

4. Family Disruption & Visa Uncertainty

With sudden changes, families accompanying H-1B holders or dependent visas might face instability. The Indian government has flagged humanitarian consequences due to potential disruptions. 

5. Stock Market & Economic Ripples

The announcement already rattled Indian IT stocks. The Nifty IT index dropped ~3% on news of the fee hike.  The higher cost of sending talent abroad could strain margins, reduce exports of tech services, and force rethinking of business models. 

Scenarios Ahead: What Indians Could Do