H-1B visa fee hike pushes Indians to consider L-1, O-1, EB-5, and OPT alternatives: Costs and eligibility explained

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For decades, the H-1B has been the most popular route for professionals to work in the United States, particularly for Indians. Every year, tens of thousands of engineers, IT professionals, doctors and researchers from India apply for it because it allows them to take up highly skilled jobs in American companies. However, the Trump administration’s decision to impose a new USD 100,000 entry fee on fresh H-1B visa petitions has sent shockwaves through India’s tech workforce and student community.

Indians are by far the largest users of the H-1B route, and the steep fee is casting a shadow over thousands of professionals and graduates planning to work in America. Yet, the H-1B is only one of several pathways into the US job market. There are also the L-1 visa for intra-company transfers, the O-1 for individuals with extraordinary ability, the EB-5 for investors, and student visa holders can extend their stay through Optional Practical Training (OPT). Each has different requirements, benefits and drawbacks, and suits different kinds of people.

The H-1B is a non-immigrant visa designed for foreign workers in specialty occupations that require specialised knowledge. It is usually valid for three years and can be extended to six. The visa is employer-sponsored, which means a US company must petition on behalf of the applicant.

For Indian professionals in IT, engineering, healthcare and research, this has been the main door to the American job market. The downside is that the visa is capped annually, subject to a lottery and tied to one employer unless transferred. Recent fee hikes and policy changes also make it expensive for both applicants and employers.

However, the H-1B visa, compared to other visa types, has an annual limitation of 85,000 and a rejection rate of 73 per cent.

The L-1 visa is designed for intra-company transfers, allowing employees of multinational companies to move from a branch in India to a US office. Unlike the H-1B, there is no lottery and no annual cap, making it a more predictable option for employees of large Indian IT firms. The L-1 is limited to staff who have worked at the company’s international branch for at least one year in the past three years. The costs are significantly lower, averaging around $7,000. In fiscal year 2024, Indian nationals made up 26 percent of L-1 approvals, or 71,799 visas. The L-1 is employer-specific, so holders cannot work for a different company without changing their visa status.

The O-1 visa is for individuals with extraordinary ability in fields such as science, business, arts, education, or athletics. It does not have a cap or a lottery system and costs about $12,000, which is roughly one-eighth of the new H-1B fee. Approval rates are high, at around 93 percent. The visa can also be extended beyond the six-year limit of the H-1B. Experts advise that companies may start preparing employees to qualify for O-1 visas by encouraging academic publications, literary works, professional presentations, and other achievements that demonstrate extraordinary ability. The O-1 can also serve as a stepping stone toward the EB-1A green card, making it an attractive route for highly skilled and motivated Indians.

The EB-5 visa provides a path to permanent residence for foreign investors who invest a substantial amount in a US business that creates or preserves jobs for American workers. The minimum investment is in the hundreds of thousands of dollars. EB-5 is appealing for wealthy Indian entrepreneurs and their families because it leads directly to a green card. Experts note that EB-5 offers a more concrete investment route than the so-called Gold Card programme, which does not guarantee faster or cheaper access to permanent residence.

Indian students on F-1 visas who complete degrees in the US can work temporarily under the Optional Practical Training programme. The standard period is 12 months, with a 24-month extension available for STEM graduates. OPT allows students to gain professional experience while waiting for a more permanent visa such as H-1B. While OPT is employer-specific and temporary, it remains an important bridge for Indian graduates entering the US workforce.

With the new $100,000 H-1B fee, Indian professionals and companies are likely to explore cost-effective alternatives. The L-1 is suitable for intra-company transfers, the O-1 for exceptional talent, EB-5 for investors, and OPT for students seeking practical experience. While L-1 and O-1 visas cannot fully replace H-1B visas, they provide flexibility, lower costs, and opportunities for longer or permanent residency. For Indian professionals navigating US immigration, understanding these options is essential to make strategic choices under changing policies.