How Trump’s $100,000 H-1B visa fee is reshaping India’s student dreams

Donald Trump

For years, the H-1B visa represented hope for Indian students aspiring to global careers. That changed when President Trump announced a $100,000 fee for each new visa. For families like that of 17-year-old Sai Jagruthi, a student in Hyderabad, the news was crushing. Her father, who works at a bank, had encouraged her pursuit of engineering as a pathway to the US. Now, what once felt like an attainable dream suddenly seemed out of reach, the New York Times reported.

India has long dominated the H-1B program, with nearly three-quarters of last year’s visas going to Indian nationals. The south of India, home to cities like Hyderabad, Bengaluru and Chennai, has built an education-to-employment pipeline centred on technical degrees and eventual placements in American companies. Universities such as Jawaharlal Nehru Technological University report that one in five graduates look to the US for higher studies as a step toward H-1B eligibility. The new rules cut directly into this aspiration.

The initial announcement suggested that all H-1B holders would need to pay the fee, creating panic. Days later, US officials clarified that it would apply only to new applications. At the same time, proposals surfaced to prioritise higher-paid jobs over the lottery system, meaning only top earners would justify the cost. The shifting signals left students and families unsure whether it was worth risking years of savings on a US degree that might no longer translate into work opportunities.

For many Indian households, the financial stakes are enormous. Undergraduate education in India already costs several years’ worth of family savings. Adding a US master’s degree—often exceeding ₹40 lakh in tuition—was traditionally justified by the potential of a well-paid job through H-1B sponsorship. With a $100,000 fee layered on top, and no guarantee of securing the visa, families fear being trapped in debt without the career payoff. Students like Santosh Chavva, an AI undergraduate, described the change as “a bomb” dropped on their plans.

The disruption is forcing students to look at other destinations. Canada, Germany, and even China are promoting themselves as attractive alternatives for technical graduates. Some young Indians also see a silver lining: if fewer engineers leave, more talent may fuel domestic start-ups and innovation. As one student noted, “This could push India to self-reliance.” Still, for many, the allure of working in Silicon Valley or NASA remains hard to let go.

It isn’t just students who are rattled. Indian IT giants like Tata Consultancy Services, which send thousands of workers on H-1Bs each year, face mounting costs. Tata’s stock reportedly lost tens of billions in value after the announcement. Even US firms like Amazon and Google—who rely heavily on mid-level H-1B talent—will now have to be more selective in their sponsorship. The global ripple effect is still unfolding.

In Hyderabad, some H-1B holders gathered at the Chilkur Balaji temple to offer prayers of thanks for extensions they had already secured. The head priest reminded them that political shifts are temporary. “Trump is here for a few years, Balaji is forever,” he told worshippers. But for students on the cusp of their careers, the uncertainty is more than spiritual—it may redefine how an entire generation approaches education, migration, and ambition.