H-1B visa fee hike: What it is, who it affects, and why it matters

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In a major turn on policy, the US administration on September 19 clarified that the newly imposed USD 100,000 fee (Rs 83 lakh) for H-1B visa applications will apply only to new applications starting with the next visa lottery, and not to current visa holders or renewals. The announcement comes after widespread confusion, protests from Indian industry bodies and tech firms, and concerns over the sweeping impact of the fee on foreign professionals.

Following public outcry and industry concern, especially in India, which accounts for a large share of H-1B visa holders, the White House clarified that this fee will be one‐time and will not affect renewals or current visa holders.

Implementation is slated for the next application cycle or visa lottery, giving employers & workers some time to adjust.

What is an H1-B visa?

A non-immigrant visa that allows US companies to employ foreign workers in “speciality occupations” that require technical or theoretical expertise (engineering, tech, science, etc.).

Applicants need at least a bachelor’s degree or equivalent in the relevant field. The U.S. employer must sponsor the worker.

The USD 100,000 fee will only apply to new applications. Existing H-1B holders, as well as those renewing or re-entering under current visas, will not be affected. This fee is a one-time charge, not an annual recurring fee. It will take effect starting with the next lottery or application round.

Why It Matters

For tech firms and other employers who bring many foreign workers, the jump is huge; what was a few hundred or a few thousand dollars per application is now USD 100,000 for new ones. For foreign professionals, the visa offers a pathway to skilled employment in the US, professional growth, experience in a global environment, and potential long-term residency through a Green Card. The program also protects US workers by requiring employers to pay prevailing or actual wages and provides protection for H-1B workers themselves.

Who does it affect?

Indian Professionals: Since Indians hold a large share of H-1B visas, this change could affect many Indian IT workers and companies that depend on sending talent to the U.S.

Companies warn it could deter hiring foreign talent, slow project timelines, or cause skill shortages in certain sectors. On the other hand, supporters argue it encourages hiring US workers and raises standards.

The H-1B program allows companies in the US to temporarily employ foreign workers in occupations that require both theoretical and practical application of highly specialised knowledge.

Before this order, H-1B petition costs ranged between USD 900 and USD 5,000, depending on legal, filing, and processing fees (most of which the employer covered).

Indians have made up the majority of H-1B applicants and recipients historically, especially from the IT sector. However, recent years have seen a decline, partly due to US legislative and regulatory pressures to hire local talent.

Top sponsors in 2025 include big tech and IT firms like Amazon, TCS, Microsoft, Google, Infosys, Wipro, Deloitte, Tech Mahindra, etc.

There are currently about 730,000 H-1B visa holders in the US, with over 70% from India; plus around 500,000 H-4 dependents (spouses and unmarried children under 21) tied to those holders.

Indian IT industry and Nasscom: They welcomed the clarification but stressed that the new fee still creates “prohibitively high” cost burdens.

Commerce Minister Piyush Goyal criticised the move, saying the US seemed “afraid of Indian talent.” Other state leaders called it a potential blow to the careers of thousands of Indian IT professionals.

Firms like Google issued advisories urging H-1B employees outside the US to return before the new rule kicks in.