India says that Trump's H-1B visa fee hike could disrupt families

White House clarifies $100,000 H-1B visa fee applies only to new petitions

A new $100,000 charge for H-1B visa applications, set to take effect on Sunday, will be applied once per petition and will not affect existing visa holders re-entering the United States, the White House confirmed on Saturday.

“This is not a recurring payment. It is a one-time fee that applies solely to the petition,” White House spokesperson Karoline Leavitt wrote on X. A petition refers to a company’s request to employ a skilled foreign worker in the US.

Impact limited to new applications

Leavitt stressed that current H-1B holders travelling abroad will not face the fee when returning to the US. The clarification reversed earlier comments by Commerce Secretary Howard Lutnick, who suggested on Friday that the charge would be annual.

The initial announcement unsettled companies such as Microsoft, JPMorgan and Amazon, which quickly advised H-1B employees to avoid international travel. An internal Goldman Sachs memo seen by Reuters similarly urged staff to exercise caution.

Leavitt’s statement reassured workers that travel in and out of the country would proceed normally and that the fee would apply only in the next H-1B lottery, not for renewals or current holders.

Trump administration’s rationale

The White House said the measure was intended to protect American workers from being displaced by lower-paid foreign labour. The order, signed by President Donald Trump on Friday, could significantly disrupt Indian IT firms, which rely heavily on H-1B visas to place professionals in the US, India’s IT trade association Nasscom warned.

A fact sheet released on Saturday noted that H-1B visa holders now make up more than 65% of IT roles, compared with 32% in 2003. Exceptions to the $100,000 fee may be granted on a “national interest” basis.

The proclamation also instructs the Departments of Labour and Homeland Security to strengthen oversight, conduct audits, and impose penalties. It further calls for a rulemaking process to revise prevailing wage levels and prioritise high-paid, highly skilled workers.

Shock across the tech sector

The announcement sparked alarm among foreign workers and employers alike. On Chinese social platform Rednote, H-1B holders recounted cutting trips short and rushing back to the US out of fear they would be hit with the new charge.

The White House defended the move as part of its strategy to curb program abuses, prevent wage suppression, and safeguard national security. “President Trump is imposing higher costs on companies using the H-1B program to ensure it is not misused and to protect American jobs,” it said.

India warns of humanitarian fallout from Trump’s $100,000 H-1B visa fee

India cautioned on Saturday that the Trump administration’s decision to impose a $100,000 annual fee on H-1B visas could have humanitarian repercussions, particularly for families, and risk disrupting the mobility of skilled workers.

Indian nationals are by far the largest users of the US H-1B programme, accounting for 71% of approved petitions last year. The sharp fee increase, set to take effect at midnight on Saturday (0400 GMT Sunday),  will now apply to each petition. Under the current system, applicants pay only a modest lottery entry fee and several thousand dollars in subsequent charges, a fraction of the new price.

Foreign Ministry spokesperson Randhir Jaiswal said the government hoped Washington would address potential disruptions: “This measure is likely to have humanitarian consequences by way of the disruption caused for families. The government hopes that these disruptions can be addressed suitably by the US authorities.”

The announcement, made on Friday, threatens to add further strain to US–India relations, already at a low point after President Donald Trump doubled tariffs on Indian imports to as high as 50% last month, citing New Delhi’s continued purchases of Russian oil.

Implications for business and bilateral ties

India’s IT industry association, Nasscom, said the steep rise in application costs could upend the global operations of Indian technology services firms that rely heavily on H-1B visas to deploy skilled staff to the US.

Jaiswal noted that both countries benefit from the exchange of skilled professionals, who contribute to innovation, wealth generation and economic growth. “Policy makers will therefore assess recent steps taking into account mutual benefits, which include strong people-to-people ties between the two countries,” he said.

The Trump administration has rolled out sweeping immigration measures since taking office, with the latest changes to the H-1B programme, widely used by the tech sector, part of a broader effort to reshape employment-based visas.

In response, US companies such as Amazon and Microsoft have advised their H-1B employees to avoid international travel and remain in the United States until the situation becomes clearer.

What is the H-1B visa?

Created under the 1990 Immigration Act, the H-1B is a non-immigrant visa that allows US companies to hire foreign workers with specialised skills and at least a bachelor’s degree. While not a pathway to permanent residency, many holders later adjust to other statuses.

The programme is particularly important to the tech sector: since 2012, more than 60% of approvals annually have been for computer-related occupations, according to Pew Research. But hospitals, banks, universities and other employers also rely on it to fill skill gaps.

Each year, 65,000 new H-1B visas are issued, with a further 20,000 available to applicants with advanced degrees. Certain employers, such as universities and nonprofits, are exempt from these caps. Indian nationals receive the majority of visas, a trend consistent for more than a decade.

Why is it controversial?

Supporters argue the visa helps address critical workforce shortages, while critics claim it suppresses wages and displaces American workers. Voices across the political spectrum have called for reform, with some on the right urging abolition of the scheme and figures on the left, including Senator Bernie Sanders, accusing companies of using it to “replace American workers with cheaper labour from abroad.”

The divide is particularly stark within the Republican Party. Tech leaders advocate for keeping the pipeline of highly skilled talent open, while Trump’s “America First” base views the programme as undermining domestic employment.

Immigration policy under Trump

The increased scrutiny of H-1B visas comes against the backdrop of wider immigration crackdowns. The Trump administration has pledged mass deportations, rolled back protections granted under the Biden era, and revoked the visas of more than 1,000 international students since April. These actions have often occurred with little warning to schools or students.

Reuters