Donald Trump slaps $100,000 annual fee on H-1B visas; 71% of these visas are issued to Indians

US President Donald Trump on Friday signed a proclamation that sharply raises the costs of hiring foreign workers under the H-1B visa program. The move requires companies to pay $100,000 for each new H-1B applicant.

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The administration said that the move aims to curb abuses that displace American workers and threaten national security. 

Under the proclamation, which takes effect at 12:01 a.m. EDT on September 21, 2025, for an initial 12-month period subject to extension, petitions for H-1B workers filed on behalf of individuals outside the United States will not be approved unless accompanied by the payment.

The Departments of Homeland Security and State have been directed to enforce the requirement, with limited exemptions allowed on a case-by-case basis if deemed in the national interest. These exemptions can apply to individual petitions, entire companies, or specific industries if considered critical to US interests, the administration said.

It further said that the employers must also retain proof of payment, with verification and audits to be conducted under forthcoming joint DHS and Labor Department guidance.

The administration said the policy is intended to address the rising share of H-1B approvals going to information technology roles, with USCIS data showing that computer-related occupations rose from about 32% of H-1B approvals in 2003 to nearly 65% in recent years, rather than 65% of the entire IT workforce.

Officials cited data showing unemployment among recent computer science graduates at 6.1% and computer engineering graduates at 7.5%, higher than in several other fields.

Critics of the program argue that major technology companies have reduced their domestic workforce while continuing to secure thousands of H-1B visas.

Officials have also said that for the H-1B fees, agencies are considering whether it will function as $100,000 annually or as an upfront lump sum, though the precise structure is still under discussion.

The H-1B visa, which allows skilled foreign professionals to work in the United States for an initial three years with the option of renewal, has long been a point of contention. It allows American companies to hire highly skilled foreign professionals, with Indians accounting for the majority of recipients.

The administration’s new approach marks a significant escalation in Trump’s broader effort to reshape U.S. immigration policy. During his first term, he restricted foreign worker visas and used tariffs to protect domestic industries. In his second term, he has moved to impose higher costs on employers relying on foreign labour while simultaneously creating a premium pathway for those willing to pay a steep price to enter the U.S. workforce. 

It's worth noting that several legal experts have noted that the $100,000 payment mandate may face court challenges over whether it exceeds presidential authority without congressional approval.

What it means for Indians?

According to official data, USCIS approved 399,395 H-1B petitions in FY24, and India accounted for 71% of all beneficiaries (283,397), the largest share.

The next four countries were China (11.7%; 46,680), the Philippines (1.3%; 5,248), Canada (1.1%; 4,222), and South Korea (1%; 3,983). Given this mix, Indian nationals and their US employers would be most affected by any new cost tied to approvals or entries covered by the proclamation.

Recently, the US government also tightened its visa rules by ending the option for applicants to schedule interviews in third countries. Many Indians had used consulates in Singapore, Thailand, or the UAE to avoid long wait times in India, but now they must apply in their home country.