Washington D.C. (United States): US President Donald Trump sent shockwaves through the technology and IT sectors on Friday, September 19, 2025, by announcing a massive increase in H-1B visa fees, raising the cost to $100,000 per application—nearly 50 times the previous fee. The announcement created immediate uncertainty among companies, foreign workers, and immigration specialists.
Immediate reactions in the tech industry
The fee hike prompted a flurry of activity across Silicon Valley and other tech hubs. Companies warned employees against travelling abroad, while foreign professionals scrambled to book return flights. Immigration lawyers worked around the clock to understand the implications of the order.
On September 20, the White House clarified that the fee applies only to new H-1B applications and is intended as a one-time charge. Despite the clarification, concerns remain over the long-term stability of the programme, which has been praised for bringing top global talent into the US but criticised for potentially undercutting American workers.
Impact on Indian and Chinese tech professionals
India has historically been the largest beneficiary of H-1B visas, accounting for 71% of approved applications last year, while China contributed 11.7%. India’s $283 billion IT sector, which derives around 57% of its revenue from the US, is expected to be significantly affected.
Industry analysts say that the $100,000 fee will disrupt onshore talent rotation, a long-standing practice where Indian IT professionals are temporarily relocated to US-based projects. Major IT firms, including TCS, Infosys, and Wipro, servicing clients such as Apple, Microsoft, Google, Meta, and JPMorgan Chase, are reportedly reconsidering onshore rotations, accelerating offshore delivery, and increasing hiring of US citizens.
Aditya Narayan Mishra of CIEL HR told BBC, “With employers reluctant to commit to the heavy cost of sponsorship, we could see greater reliance on remote contracting, offshore delivery and gig workers.” Some Indian IT companies have already begun building local US teams and shifting project deliveries offshore.
Consequences for US industries
Experts warn that the fee hike may force US companies to revise hiring policies, offshore critical operations, and potentially undermine US innovation and competitiveness.
Immigration policy analyst Gil Guerra stated, “The demand for new workers in tech and medicine is projected to increase, and even a short-term shortage could seriously impact the US economy and national well-being.”
Furthermore, the steep fees may prompt international students from India and China to seek alternatives to US universities, which could affect the American higher education system and talent pipeline in STEM fields.
Countries poised to benefit
The hike opens opportunities for other countries to attract global talent displaced by the new US rules. Canada is expected to be a major beneficiary due to its proximity and tech-friendly policies. The UK’s Global Talent Task Force aims to lure top scientists, academics, and digital experts, while Germany has already invited H-1B visa holders to explore job opportunities within its borders.
Conclusion
The H-1B fee increase represents a significant shift in US immigration policy, with far-reaching consequences for Indian and Chinese professionals, US industries, and the global talent ecosystem. Companies, governments, and students are likely to adjust strategies in the coming months as the real impact of the policy becomes clearer.