Trump Imposes $100K Fee on H-1B Visa Holders: Effects on Indian Tech Workers

The Trump administration announced a proposal requiring companies to pay $100,000 annually for H-1B worker visas. This decision could significantly impact the technology sector, which heavily relies on skilled labor from countries like India and China.

Upon taking office, Trump initiated an extensive immigration reform, aiming to restrict certain legal immigration pathways. The recent move to modify the H-1B visa program is among the most prominent efforts to alter temporary employment visa policies.

U.S. Commerce Secretary Howard Lutnick emphasized the importance of training American graduates rather than filling positions with foreign workers. He stated, “Train Americans. Stop bringing in people to take our jobs.”

This crackdown on the H-1B visa program has sparked tension within the tech industry, especially since many firms previously supported Trump’s campaign.

Advocates for reform argue that the H-1B program depresses wages and sidelines U.S. workers. Conversely, supporters, like Tesla CEO Elon Musk, argue that it is crucial for attracting highly-skilled professionals essential for maintaining competitiveness.

Concerns have been raised about employers exploiting the H-1B program, leading to wage suppression for American workers, according to the executive order signed recently.

The number of foreign science, technology, engineering, and mathematics (STEM) workers in the U.S. surged from 1.2 million in 2000 to nearly 2.5 million in 2019, despite only a 44.5% increase in overall STEM employment during the same period.

Move Could Deter Global Talent

Introducing new fees may discourage the brightest minds worldwide from pursuing opportunities in the U.S., according to Deedy Das, a venture capital firm partner. He cautioned, “If the U.S. stops attracting top talent, it severely limits its capacity for innovation and economic growth.”

This proposal could impose significant financial burdens on companies, particularly affecting smaller tech firms and startups.

The specific administration details on how the fee would be implemented are still under discussion, with Lutnick noting that it would be a $100,000 annual fee for the visa’s three-year duration.

Analysts warn that such fees might compel companies to relocate high-value work overseas, jeopardizing America’s competitiveness in the global artificial intelligence landscape.

“Though this could provide a short-term financial boost for Washington, it risks undermining the U.S.’s innovation edge long term,” stated eMarketer analyst Jeremy Goldman.

India Accounts for Most H-1B Visas

Last year, India accounted for 71% of all H-1B visas issued, while China held a distant second place at 11.7%, according to government statistics.

In the first half of 2025, Amazon and its cloud division, AWS, secured over 12,000 H-1B visas, with Microsoft and Meta Platforms each obtaining more than 5,000 approvals.

Lutnick asserted that “all the major companies are supportive” of the new $100,000 annual fee for H-1B visas.

However, many large U.S. tech, banking, and consulting firms did not respond to inquiries regarding the fee. Additionally, the Indian embassy and the Chinese Consulate in New York have yet to comment.

Following the announcement, shares of Cognizant Technology Solutions fell nearly 5%, while U.S.-listed shares of Indian firms Infosys and Wipro dropped between 2% and 5%.

Immigration Crackdown

Aaron Reichlin-Melnick, from the American Immigration Council, expressed concerns about the legal validity of the proposed fees. He argued that Congress has only authorized fee structures to recover application adjudication costs.

The H-1B program typically offers 65,000 visas annually for specialty occupation workers, plus an additional 20,000 for those with advanced degrees.

Currently, the lottery process requires a nominal fee, with additional potential costs that can reach thousands of dollars if approved.

Employers generally cover nearly all visa fees, with H-1B visas lasting for a duration of three to six years.

On the same day, Trump also signed an executive order introducing a “gold card” for individuals willing to pay $1 million for U.S. permanent residency.