Trump's $100,000 H-1B visa shock: Why US may lose more than India

September 22, 2025

President Trump's recent announcement of a $100,000 fee for H-1B visas created widespread panic among Indian visa holders and tech companies before the White House clarified it would apply only to new applicants as a one-time charge. This dramatic policy shift threatens to effectively close the H-1B pathway that has for three decades brought Indian talent to American industries, particularly in technology and medicine where Indians represent over 70% of H-1B recipients. The median salary for new H-1B employees is only $94,000, making the fee prohibitively expensive for most potential applicants and likely causing medium to long-term labor shortages in critical sectors.

Who is affected

Indian H-1B visa holders (who make up over 70% of recipients) and potential applicants
Indian students in the US (who represent one in four international students)
US technology companies and startups that rely on H-1B talent
US hospitals and medical facilities (with Indian doctors making up around 5-6% of the physician workforce)
US universities and STEM programs
India's $283 billion IT sector and outsourcing companies like TCS and Infosys
US clients of Indian IT firms who may face higher costs and project delays

What action is being taken

Immigration lawyers are working to decode the presidential order
Silicon Valley firms are advising staff not to travel outside the country
Indian IT companies are preparing to shift work offshore and become more selective in sponsorship decisions
Indian firms are planning to pass increased visa costs to US clients
Companies are rethinking staffing models by increasing remote contracting and gig workers

Why it matters

The H-1B program has been crucial for supplying talent to US industries for three decades
Indians contribute approximately $86 billion annually to the US economy, including $24 billion in federal payroll taxes
The fee is unworkable for most new applicants since the median salary for new H-1B employees is only $94,000
The policy could cause medium and long-term labor shortages in critical sectors like healthcare and technology
Indian students may choose other countries for education where they can "put down permanent roots"
US innovation and competitiveness could face a "devastating blow" according to experts
The policy may accelerate the offshoring of jobs from the US

What's next

No explicit next steps stated in the article, though it mentions immigration lawyers expect legal challenges to Trump's move soon.

Read full article from source: BBC