WASHINGTON: US President Donald Trump has announced a major policy shift by imposing a $100,000 annual fee on new H-1B visa applications and renewals, a move expected to hit Indian nationals the hardest. The decision takes effect on September 21, 2025.
The H-1B visa programme, designed for specialised professionals in fields such as information technology, engineering and mathematics, has long been dominated by Indian applicants.
Reports suggest Indian citizens account for more than 70 per cent of all H-1B visas issued, placing them at the centre of the latest restrictions.
The new measure, which is likely to face legal challenges, was announced in Washington on Friday alongside the launch of a $1 million “gold card” residency programme that Trump had previewed months earlier.
“The main thing is, we’re going to have great people coming in, and they’re going to be paying,” Trump told reporters as he signed the orders in the Oval Office.
H-1B visas allow companies to sponsor foreign workers with specialised skills — such as scientists, engineers and computer programmers — to work in the United States, initially for three years and extendable to six.
The US awards 85,000 H-1B visas per year on a lottery system, with Indian nationals accounting for nearly three-quarters of the recipients.
India’s top trade body NASSCOM warned that technology companies would be hit hard as “business continuity will be disrupted for onshore projects.”
Heavy blow to Indian professionals
US officials have defended the steep fee as a safeguard against alleged misuse of the programme by outsourcing firms, many run by Indian nationals, who critics say have displaced American workers with cheaper foreign labour.
Industry experts caution that the measure could severely restrict opportunities for Indian professionals, limit access to the American job market and create uncertainty for thousands of families relying on the visa system.
Backlash in India
The announcement has sparked strong reactions across India. On social media, Indian professionals called the move “discriminatory” and “devastating,” while opposition politicians accused Washington of targeting Indian talent.
NASSCOM said it was in contact with both the Indian government and the US embassy to seek clarification and relief. The policy shift also rattled Indian stock markets, with shares of IT firms heavily reliant on US business posting losses.
Wider implications
Analysts believe the financial barrier may discourage skilled Indian workers from pursuing opportunities in the US, while others may be forced to return home. Some observers argue this could lead to a “reverse brain drain,” with India retaining talent previously lost to foreign markets.
At the same time, American companies dependent on foreign workers could face shortages, potentially undermining their global competitiveness. Tech giants such as Microsoft, Amazon and JPMorgan are already reviewing contingency plans to mitigate the impact.
Diplomatic setback
Commentators say the move carries not only economic consequences but also diplomatic undertones, reflecting the use of immigration policy as leverage amid shifting US-India ties.
Critics in India have labelled it a “blow to the diaspora” and a stark reminder of Washington’s increasingly protectionist stance.