President Donald Trump has announced a major change to the H-1B visa system, introducing a $100,000 fee per petition, dramatically higher than the previous $1,500 administrative cost. The executive order, effective September 21, is expected to affect thousands of Indian American IT professionals, as well as Chinese workers, who form the majority of H-1B visa holders.
The White House justified the fee by claiming the H-1B program has been misused to replace American workers with lower-paid foreign labor. Data cited by the administration shows that foreign STEM workers in the US have doubled from 1.2 million in 2000 to 2.5 million in 2019, while overall STEM employment rose by only 44.5%. IT firms, in particular, were accused of outsourcing jobs and letting go of domestic staff to save costs.
However, Indian American professionals and industry leaders argue that the visa has enabled the US to access highly skilled talent crucial for technology and innovation. Amazon, Microsoft, Meta, Apple, and Google are top beneficiaries, while Indian IT companies like Infosys, Tata Consultancy Services (TCS), Wipro, and Tech Mahindra rely on H-1B visas to deploy thousands of engineers to the US. Indians receive over 70% of all H-1B visas each year, making them the largest beneficiary group.
Critics also dispute claims that H-1B holders undercut American wages. The American Immigration Council reports that in 2021, H-1B workers earned a median $108,000, more than double the median US worker salary. The program has also supported critical innovation, including the employment of thousands of scientists contributing to COVID-19 vaccine development.
Some observers warn that the $100,000 fee could disrupt Indian American professionals’ access to US jobs, potentially limiting opportunities for IT firms and their clients. Additionally, Trump introduced a “gold card” visa program with a $1 million fast-track option for certain immigrants.
With Indian Americans forming the bulk of H-1B applicants, this fee hike could pose significant challenges for both skilled professionals and US companies dependent on global talent, raising questions about the future of high-skilled immigration.
