In a move that could severely affect Indian professionals in the United States, President Donald Trump on Friday signed a proclamation that imposes a USD 100,000 annual fee on H1-B visas. The decision is part of his administration’s broader immigration crackdown, aimed at limiting foreign workers and ensuring that only “extraordinary talent” is allowed into the US workforce.

Fee hike shocks Indian tech workers

The H1-B programme, which allows skilled workers from abroad to take up jobs in specialised fields, has long been a lifeline for Indian professionals in the technology sector. Every year, tens of thousands of Indians are sponsored by American companies, particularly in Silicon Valley and other IT hubs.

The new policy, however, makes sponsorship far more expensive. A three-year visa, which could earlier be renewed for another three years, will now cost sponsoring companies a staggering USD 3,00,000 for the full term, excluding salary and other benefits.

For workers already stuck in decades-long green card backlogs, the additional burden threatens their ability to remain in the US if employers refuse to cover the cost.

White House justification

White House staff secretary Will Scharf defended the move, calling the H1-B programme “one of the most abused visa systems” in the US.

“Either the person is very valuable to the company and America, or they’re going to depart and the company is going to hire an American,” Scharf said.

President Trump echoed this sentiment, arguing that the new fee will “stop the nonsense” of foreign workers replacing American graduates.

Commerce Secretary Howard Lutnick further claimed that, historically, employment-based immigration allowed too many below-average earners into the US. “We were taking in the bottom quartile. That was illogical. Now we will only take extraordinary people who create businesses and jobs for Americans,” he added.

The “Gold Card” visa alternative

Alongside the H1-B hike, Trump announced a new “Gold Card” programme. This pathway will allow foreigners with “extraordinary ability” to fast-track their green cards by paying USD 1 million individually or USD 2 million if sponsored by a corporation.

According to the administration, this programme could raise hundreds of billions of dollars, which Trump pledged to use to cut taxes and reduce national debt.

Indian IT sector braces for impact

Indian professionals are expected to be the hardest hit, as they constitute nearly 70% of all H1-B visa holders in the US. Tech firms that rely heavily on Indian engineers now face a tough choice—either absorb the massive fee or look to local hiring.

Industry experts warn that the sudden hike could trigger a talent shortage in the US, while also creating uncertainty for thousands of Indian families who have built their lives around long-term H1-B employment.

The move comes amid mounting pressure on Indian outsourcing companies, many of which already face strict scrutiny under US immigration laws. With the new policy, firms may scale back sponsorships, thereby impacting India’s IT export industry.

Political and economic implications

Trump’s announcement has been framed as a populist step ahead of elections, appealing to domestic workers concerned about job competition. The administration estimates that the new fee structure will add over USD 100 billion to the US treasury.

While Trump insisted that technology CEOs are “very happy” with the changes, industry insiders remain sceptical, warning of potential disruptions to innovation and global competitiveness.

Conclusion

For Indian workers, the new visa fee is more than just an economic challenge—it represents a shrinking pathway to permanent residency in the US. With no clarity yet on exemptions or relief for existing visa holders, the move could alter the landscape of Indian migration to America and push skilled talent to look for opportunities in other countries