On Friday, US President Donald Trump signed a proclamation marking one of the most significant changes to the H-1B visa program in recent years. The new order restricts the entry of H-1B visa holders and significantly increases the cost for employers seeking to hire foreign professionals. Under this directive, employers sponsoring workers through the H-1B route will now be required to pay an annual fee of $100,000 for each visa.
The H-1B program, designed to allow US companies to employ foreign workers in specialized roles where local talent is not easily available, has long been a critical pathway for skilled professionals. The latest move, however, drastically alters the economics of hiring foreign workers, particularly for companies that depend on large numbers of H-1B visa holders.
Sharp Fee Increase Announced
The most striking element of the proclamation is the introduction of a $100,000 per year fee for each H-1B visa application. This is a dramatic increase compared to earlier costs, which were far lower for employers. By setting the price so high, the US administration is signaling a sharp shift in how it wants companies to approach foreign hiring.
US Commerce Secretary Howard Lutnick, speaking at the Oval Office during the signing event, emphasized that major corporations had been consulted beforehand. He stated, “A hundred thousand dollars a year for H-1B visas, and all of the big companies are on board. We’ve spoken to them.” This remark suggests that leading firms were already aware of the upcoming change and had shown a willingness to adjust to the new requirement.
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Indian Tech Workers Likely to Face the Impact
The impact of this decision is expected to be most deeply felt by Indian professionals. A significant portion of H-1B visa holders in the United States comes from India, especially from the information technology and technology services sector. For years, Indian tech workers have played a crucial role in filling specialized roles in US companies. With the imposition of a steep annual fee, the cost of employing Indian workers through this route will rise sharply for American companies.
The policy change could lead to a reduction in the number of new visas applied for by firms, as the cost of sponsorship rises to a level that may not be sustainable for all. This may also change the hiring practices of US corporations, who will now have to carefully weigh the cost of bringing in foreign workers against hiring from the local talent pool.
Statement from the Administration
During the Oval Office event, Commerce Secretary Howard Lutnick directly addressed the new fee structure. He made it clear that the government had engaged with major corporations before finalizing the move. His statement—“all of the big companies are on board”—reflects that large employers who rely on the H-1B program were informed in advance and may have agreed to cooperate with the administration’s decision.
The proclamation, signed by President Trump, officially makes the $100,000 fee an annual requirement. This transforms H-1B visas from being a relatively cost-effective means of hiring into a premium option that only the most resourceful or committed employers may choose to pursue.
Reshaping Hiring Practices
With the imposition of such a high fee, the landscape of foreign hiring in the United States is poised to change. Companies that have historically relied heavily on foreign talent through H-1B visas may now reassess their workforce planning. For some, absorbing the cost may be feasible, especially for highly specialized roles where foreign expertise is indispensable. For others, particularly smaller firms or companies with a large dependence on H-1B workers, the new expense may be prohibitive.
The proclamation makes clear that the intention is to restrict the entry of H-1B workers. This reflects a more controlled approach to immigration through work visas, ensuring that companies reconsider the balance between local hiring and foreign recruitment.
Broader Implications for Indian Professionals
For Indian professionals, particularly those in the technology and IT services industries, this change represents a significant barrier. The US has been a prime destination for Indian talent, and the H-1B program has been a cornerstone of that movement. Now, with employers being asked to spend $100,000 annually per worker, the chances of securing opportunities in the US may decline.
Many Indian workers may face fewer sponsorship opportunities as companies cut back on applications due to costs. For those who are already on H-1B visas, future extensions or renewals could also be subject to the new pricing model, depending on how the proclamation is applied.
Conclusion
The Trump administration’s decision to impose a $100,000 annual fee on H-1B visas introduces a fundamental shift in the US approach to hiring foreign workers. By making sponsorship significantly more expensive, the government is effectively limiting the entry of foreign professionals while reshaping the hiring patterns of American corporations.
Indian workers, who represent one of the largest groups of H-1B holders, are expected to be most affected by this change. For companies, the proclamation forces a re-evaluation of workforce strategies, balancing the high cost of foreign hiring against the need for specialized skills.
Commerce Secretary Howard Lutnick’s assurance that “all of the big companies are on board” highlights that the administration believes industry leaders will adapt to the change. However, for thousands of professionals who have long viewed the H-1B route as a path to working in the US, this new policy may alter both expectations and opportunities in the years ahead.
