US proposes to hike H1-B Visa by over USD 100,000, may make it permanent; how the move could affect Indians

US proposes to hike H1-B Visa by over USD 100,000, may make it permanent; how the move could affect Indians


Washington:

The Trump administration has proposed making a fee of more than USD 100,000 (approximately Rs 95.71 lakh) for new H-1B visas permanent, a move that could sharply increase hiring costs for US employers and have a significant impact on Indian professionals, who account for the largest share of H-1B workers.

The US Department of Homeland Security has proposed a fee of USD 103,265 for new H-1B visas. The proposal comes after an earlier USD 100,000 fee introduced by President Donald Trump last year was blocked by a federal judge and remains tied up in legal challenges.

The new rule will now undergo a 30-day public comment period and could be finalised by the end of the year.

How H-1B Visa fee hike would affect Indians

The H-1B programme allows US employers to hire foreign workers in specialised fields such as technology, engineering, education and research. The US issues 65,000 regular H-1B visas each year, along with an additional 20,000 for workers with advanced degrees.

Indian professionals are likely to be among those most affected. Official data cited by AFP shows that Indians accounted for around 70% of H-1B workers in fiscal 2025, followed by Chinese nationals at 12%.

However, the proposed fee would not apply to H-1B visas granted to foreign nationals already in the US on student visas, or to renewals of existing H-1B visas. The fee could nevertheless make it significantly more expensive for US companies to recruit skilled Indian workers directly from overseas.

Before Trump’s earlier order, H-1B-related fees typically ranged between USD 2,000 and USD 5,000. The proposed USD 103,265 charge would therefore represent a dramatic increase.

Trump says H-1B system needs reform

The administration has argued that the H-1B programme has been abused by companies seeking to replace American workers with cheaper foreign labour. According to the new proposal, a higher fee could also discourage employers from choosing H-1B workers when qualified American candidates are available.

Business groups, however, argue that the programme helps US companies address labour shortages and recruit highly skilled professionals from around the world.

The proposed fee is also likely to face further legal challenges. A federal judge blocked the earlier USD 100,000 charge in June, ruling that the administration had exceeded its authority. Other litigation over the fee remains ongoing.

The Trump administration maintains that the charge is not a tax and falls within the president’s authority to restrict the entry of foreign nationals.

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