Trump’s $100,000 H-1B fee: Redrawing the future of Indian workers in the U.S.

On September 19, 2025, the President of the United States signed a proclamation introducing a new annual fee of USD 100,000 for each H-1B visa. The measure takes effect from September 21, 2025, for an initial period of one year, with the possibility of extension.

The H-1B visa programme has long served as a principal channel for skilled professionals, particularly from India, to participate in the U.S. workforce. Indians account for a significant share of H-1B visas issued each year, and the programme has been integral to different sectors. The introduction of this new fee is expected to significantly impact the cost structures of employers who rely on this route for hiring skilled foreign workers. For every ten employees, an employer would now need to incur an additional cost of USD 1 million annually, over and above existing expenses. This shift could alter hiring practices by making sponsorship economically viable only for highly specialised or senior-level roles.

The implications extend beyond large corporations. Smaller businesses, start-ups, and even academic and research institutions that rely on H-1B visa holders may find the new costs particularly difficult to absorb. In certain sectors, such as universities or research centres where H-1B petitions are often filed for scholars or postdoctoral researchers, the financial burden may constrain the ability to attract international talent.

From a broader perspective, this development is expected to influence how organisations plan their global workforce strategies. Employers may consider reducing their reliance on the U.S. market for deploying foreign professionals and instead explore opportunities in other jurisdictions offering favourable business conditions and access to skilled talent at sustainable costs. Similarly, diversification in sourcing talent from multiple geographies may emerge as a practical response, thereby reducing overdependence on a single market. For Indian businesses in particular, this could lead to increased focus on setting up or expanding operations in alternate regions where operational costs are viable and mobility requirements are less restrictive.

Companies may also increasingly look to strengthen remote working arrangements as part of their workforce strategy. By engaging employees who can operate effectively in a remote working culture, organisations may continue to leverage global talent without requiring physical relocation.

While the long-term impact of this measure will depend on judicial scrutiny and potential policy revisions, its immediate effect is to raise the cost of accessing the H-1B programme substantially. Employers, professionals, and policymakers alike will now need to evaluate how best to adapt to this change, whether by recalibrating hiring practices, diversifying mobility strategies, or pursuing alternate immigration solutions.