The Donald Trump administration has taken a step that has created widespread debate in the global technology sector. It has announced a massive hike in the fee for H-1B visas, the programme under which U.S. companies hire skilled foreign workers. As per the new directive, any organisation recruiting professionals from abroad under this scheme must now pay $100,000 for each application.

This change is not just a technical adjustment. It is a policy move with serious consequences, especially for Indian IT professionals and companies that rely heavily on H-1B visas to place skilled engineers, developers, and tech workers in the United States. The new regulation is aimed at discouraging programme misuse and at the same time ensuring that only the most exceptional candidates are considered worth such a high cost.

The Trump administration has said that this rule will be in place for 12 months starting from September 21, 2025. After this period, the measure could either be extended or allowed to lapse, depending on how federal authorities assess its effectiveness. Officials clarified that this decision comes amid rising concerns about the displacement of U.S. employees by overseas workers who are often paid lower wages.

The presidential declaration also directs authorities to make changes in the existing wage structures and to give preference to applicants commanding higher salaries. Moreover, the Secretary of Homeland Security has been granted the discretion to provide exceptions in cases where the recruitment of foreign talent is necessary for national objectives and does not affect security interests.

What is the H-1B visa programme?

The H-1B visa is a work permit system in the United States that allows companies to hire foreign talent for specialised roles. These positions usually require advanced theoretical knowledge or technical skills in fields such as information technology, engineering, mathematics, science, and medicine.

The programme was created to address gaps in the U.S. labour market where domestic supply of skilled professionals is insufficient. Under the current framework, the visa is initially issued for three years and can be extended for up to six years. During this time, the visa holder is legally allowed to live in the United States and continue working with the sponsoring employer.

Employers applying for H-1B visas must demonstrate that the job truly requires specialised expertise and that the candidate has the necessary qualifications. For decades, Indian professionals, particularly in technology and engineering, have formed the single largest group of H-1B visa holders, making India a key stakeholder in this programme.

What does an H-1B visa cost at present?

The current H-1B visa application fees were already considered high before this new development. Depending on the circumstances, employers pay between $1,700 and $4,500, with the higher fee applicable for expedited or premium processing. Most employers categorise this expense as part of their routine business costs.

With Trump’s order, the jump is staggering. The new requirement of $100,000 means the fee has been increased by 22.2 times compared to the $4,500 level. In percentage terms, this is a sharp 2,111.1% hike. For companies filing large numbers of petitions, this fee change could translate into millions of dollars in additional costs.

What does Trump’s proclamation on H-1B say?

The presidential order titled "Restriction on entry of certain nonimmigrant workers" makes it clear that nonimmigrants seeking entry to the United States through the H-1B programme will now have to include an additional $100,000 payment with their visa petitions.

This proclamation is not permanent but has been defined for an initial 12-month period from September 21, 2025, with the option of extension depending on future evaluations.

The supporting document cited statistical data to underline why such a step was necessary. Between 2000 and 2019, the number of foreign professionals working in STEM fields in the U.S. nearly doubled, rising from 1.2 million to about 2.5 million. In contrast, overall STEM employment in that period grew by only 44.5%.

In computer and mathematics jobs specifically, the share of foreign workers grew from 17.7% in 2000 to 26.1% in 2019. According to the declaration, misuse of the H-1B programme was a primary reason for this increase, leading to displacement of American workers.

Which companies will be hit hardest by the new visa fee hike?

The directive makes it clear that technology companies, particularly those dependent on outsourcing, are the main users of H-1B visas and thus will face the largest impact. Recent federal data reveals that Amazon led with 10,044 H-1B approvals as of June 2025, while TCS followed with 5,505 approvals.

Other tech giants are also heavily dependent on the programme. Microsoft and Meta secured 5,189 and 5,123 visas respectively. Apple obtained 4,202, while Google followed closely with 4,181. Consulting firm Deloitte received 2,353 approvals, while Indian IT firms Infosys, Wipro, and Tech Mahindra Americas accounted for 2,004, 1,523, and 951 approvals respectively.

The proclamation stated that technology companies have "prominently manipulated" the H-1B programme. It noted that the proportion of IT professionals in the H-1B pool has risen dramatically—from 32% in Fiscal Year 2003 to over 65% on average in the last five fiscal years.

Studies referenced in the proclamation show that outsourcing firms relying on H-1B workers achieve significant cost savings, with entry-level positions under this programme costing 36% less than similar full-time roles filled by American workers.

The document further accused companies of exploiting the system by shutting down U.S.-based IT departments, firing local employees, and hiring cheaper foreign workers through the H-1B route. It highlighted several specific cases:

• One company got approval for more than 5,000 H-1B workers in FY 2025, while laying off 15,000 American employees in the same year.

• Another organisation approved for 1,700 H-1B workers in FY 2025 dismissed 2,400 U.S. employees in Oregon during July.

• A third company has reduced its U.S. workforce by nearly 27,000 since 2022, while at the same time securing approval for more than 25,000 H-1B workers.

• A fourth company eliminated 1,000 jobs in February 2025, while receiving approvals for over 1,100 H-1B visas that year.

Finally, the U.S. Citizenship and Immigration Services (USCIS) confirmed in July that it had received enough applications to meet both the regular 65,000 H-1B visa cap and the additional 20,000 cap for master’s degree holders for the fiscal year 2026.

Microsoft issues 24-hour deadline warning for Indian and foreign staff after H-1B fee hike to $100,000: Strong advice for visa holders

Microsoft has taken a clear and urgent position following the Trump administration’s decision to impose a $100,000 fee on H-1B visas. The company has instructed its employees holding H-1B and H-4 visas to return to the United States immediately, well before the September 21 deadline, after which the new rule takes effect. This would mean that companies will be forced to pay a heavy $100,000 fee per year for each H-1B worker visa.

An internal email reviewed by Reuters revealed the seriousness of this warning. Microsoft went on to advise its employees already present in the United States to avoid travelling abroad and to remain within the country for the foreseeable future.

In the words of the company, “H-1B visa holders should stay in the US for the foreseeable future. Also recommend H-4 visa holders remain in the US. Strongly recommend H-1B and H-4 visa holders return to the US tomorrow before the deadline,” Microsoft wrote in its message to employees, as quoted by Reuters.

'National security': Why Trump put $100,000 yearly fee on H-1B visas; a heavy strike on tech sector

President Donald Trump has defended the new proclamation by framing the issue as one of protecting national interests. On Friday, after signing the order, he argued that the misuse of the H-1B visa programme has now grown into a “threat to national security”.

Under the new rule, companies hiring foreign workers will have to bear the steep cost of $100,000 annually for each H-1B employee they employ in the United States. Trump stated, “The abuse of the H-1B programme is also a national security threat. Domestic law enforcement agencies have identified and investigated H-1B-reliant outsourcing companies for engaging in visa fraud, conspiracy to launder money... and other illicit activities to encourage foreign workers to come to the United States.”

The proclamation, formally titled “Restriction on entry of certain nonimmigrant workers”, restricts entry into the U.S. for H-1B workers unless their petitions are supported by the $100,000 payment.

Explaining the original purpose of the visa, Trump said, “The H-1B nonimmigrant visa programme was created to bring temporary workers into the United States to perform additive, high-skilled functions, but it has been deliberately exploited to replace, rather than supplement, American workers with lower-paid, lower-skilled labour.”

He went further in the same proclamation, declaring, “The severe harms that the large-scale abuse of this programme has inflicted on our economic and national security demand an immediate response. I therefore find that the unrestricted entry into the United States of certain foreign workers would be detrimental to the interests of the United States because such entry would harm American workers, including by undercutting their wages.”

Trump concluded by stressing that higher visa costs are needed to fix the abuse while still ensuring companies can bring in outstanding foreign professionals, saying the new rules would continue to allow firms to hire “the best of the best temporary foreign workers.”

'Tech and STEM fields most impacted'

The proclamation paid particular attention to the technology and science sectors, which rely heavily on H-1B visas. Trump said, “Some employers, using practices now widely adopted by entire sectors, have abused the H-1B statute and its regulations to artificially suppress wages, resulting in a disadvantageous labour market for American citizens, while at the same time making it more difficult to attract and retain the highest skilled subset of temporary workers, with the largest impact seen in critical science, technology, engineering, and math (STEM) fields.”

The document directly accused IT companies of being the biggest violators. It stated that IT firms “have prominently manipulated the H-1B system, significantly harming American workers in computer-related fields.”

Figures included in the proclamation further highlighted the trend. The share of IT workers in the H-1B programme stood at 32% in Fiscal Year 2003, but in the last five years that figure has risen to over 65%. It concluded by noting, “Some of the most prolific H-1B employers are now consistently IT outsourcing companies.”

Challenges faced by American graduates

The administration also emphasised the impact on local graduates. According to the proclamation, abuse of the visa system has left U.S. college graduates struggling to secure IT jobs. It pointed out that companies were hiring foreign workers “at a significant discount to American workers.”

The document cited high unemployment among graduates in computer science and engineering, noting that many American technology firms “have laid off their qualified and highly skilled American workers and simultaneously hired thousands of H-1B workers.”

One striking example highlighted in the text was a software company that secured approval for more than 5,000 H-1B workers in FY 2025, but at the same time “announced a series of layoffs totalling more than 15,000 employees.”

The proclamation also drew attention to the humiliation faced by local IT professionals, who said they were forced to train foreign replacements before losing their jobs. As recorded in the text, American IT workers revealed they were compelled to “train the foreign workers who were taking their jobs and to sign nondisclosure agreements about this ‘indignity’ as a condition of receiving any form of severance.”

Implementation of rules and possible exceptions

The new rules will be implemented strictly. According to the order, the Secretary of Homeland Security will restrict all petitions that are not supported by the $100,000 payment for H-1B workers outside the United States, for a period of 12 months after September 21, 2025.

In addition, the Secretary of State will issue fresh guidance to prevent misuse of B visas by individuals whose H-1B petitions were approved with start dates set before October 1, 2026.

The proclamation clarified, however, that the restrictions will not apply in cases where employing foreign professionals is “in the national interest and does not pose a threat to the security or welfare of the United States.”

H-1B visa to cost more under Trump order

On Friday, September 19, Donald Trump signed the executive order that officially introduced the new $100,000 annual fee for H-1B applications. The move is seen as a heavy blow to the U.S. technology sector, which has long depended on foreign professionals, particularly from India and China.

Interestingly, Trump brushed aside fears of negative reactions, saying, “I think they're going to be very happy.”

U.S. Commerce Secretary Howard Lutnick also took a strong stance, declaring, “If you're going to train somebody, you're going to train one of the recent graduates from one of the great universities across our land. Train Americans. Stop bringing in people to take our jobs.”

Adding to this, White House staff secretary Will Scharf remarked, "One of the most abused visa systems is the H1-B non-immigrant visa programme. This is supposed to allow highly skilled labourers who work in fields that Americans don't work in to come into the United States of America. What this proclamation will do is raise the fee that companies pay to sponsor H-1B applicants to $100,000. This will ensure that the people they're bringing in are actually very highly skilled and that they're not replaceable by American workers."

India accounts for the majority of H-1B visas

India continues to dominate the H-1B visa landscape. Government data shows that in the last year alone, India accounted for 71% of all approved H-1B beneficiaries, far ahead of China, which stood at 11.7%.

In the first half of 2025, technology companies saw particularly high approvals. Amazon and its cloud computing unit AWS together received more than 12,000 H-1B visas, while Microsoft and Meta each secured over 5,000 approvals.