The H-1B visa, long considered a lifeline for Indian tech professionals seeking opportunities in the United States, faces a seismic shake-up. President Donald Trump has announced sweeping changes that will require employers to pay $100,000 per visa application, a move he says is aimed at curbing &ldquo;systemic abuse&rdquo; of the program. The order takes effect September 21 and will remain in place for 12 months unless extended.
Calling misuse of the H-1B program a &ldquo;national security threat&rdquo;, Trump said the new fee would compel companies to hire more Americans instead of importing cheaper foreign labor. &ldquo;The abuse of the H-1B visa program has made it even more challenging for college graduates trying to find IT jobs,&rdquo; his proclamation declared.
The overhaul comes at a critical time. Indians account for over 70% of H-1B holders, meaning the rule could disproportionately hit the Indian diaspora. For technology giants that rely heavily on Indian engineers, the financial burden of sponsorship may now outweigh the benefits, particularly for early-career professionals.
&ldquo;Thousands of Indian workers will not be forced to immediately return, but renewals will become costlier and job mobility will shrink,&rdquo; explained immigration lawyer Sophie Alcorn, who works with global tech talent. &ldquo;Employers may hesitate to sponsor or retain H-1B employees.&rdquo;
The uncertainty has already sparked conversations about alternatives. Countries like Canada, the UK, the UAE and Saudi Arabia could emerge as attractive destinations for skilled Indian workers who feel increasingly unwelcome in the US.
Created in 1990, the H-1B visa allows US companies to employ foreign workers in specialty occupations for three years, extendable to six. Each year, the program caps out at 65,000 visas, with an additional 20,000 reserved for advanced degree holders from American universities.
But critics within the Trump administration say the system has been exploited. Vice President JD Vance has slammed tech giants for &ldquo;laying off thousands of Americans while applying for thousands of overseas visas,&rdquo; calling the practice contradictory. USCIS director Joseph Edlow echoed that sentiment, saying the program should &ldquo;supplement, not supplant&rdquo; the American workforce.
Even within Trump&rsquo;s base, debate is fierce. Commentators like Steve Bannon and Laura Loomer have pushed for eliminating H-1Bs altogether. Yet Trump, who has employed H-1B workers himself, defended the scheme: &ldquo;It&rsquo;s a great program. I&rsquo;ve been a believer in H-1B.&rdquo;
For Indian engineers in Silicon Valley and beyond, the question now is whether this policy survives court challenges. As one H-1B holder put it: &ldquo;We&rsquo;ll have to wait and see if this even holds up legally. Until then, the uncertainty is the hardest part.&rdquo;
What is clear is that the new fee signals a tougher chapter ahead for Indian talent in the US tech landscape.

New H-1B visa rule from Sept 21 may hit Indian IT talent; firms face steeper hiring costs

Trump Slaps $100K Fee on H-1B Visas

New H-1B visa rule from Sept 21 may hit Indian IT talent; firms face steeper hiring costs

September 20, 2025 | 16:12 IST