The United States has announced a steep increase in fees for H-1B visa applications, sparking concern among foreign workers, students, and tech companies alike. The cost for new visa petitions has been raised to USD 100,000, up from the previous range of roughly USD 2,000 to USD 5,000. The move, described by the Trump administration as a measure to “protect American jobs,” is expected to disproportionately affect Indian and Chinese applicants, who make up the majority of H-1B holders. While the White House insists the new fees apply primarily to fresh applicants, critics argue it will make the US less attractive to global talent at a time when other countries are actively competing for skilled professionals. The announcement has left many with questions about the future of the program.
What is the H-1B visa
The H-1B visa is a non-immigrant visa that allows US companies to hire foreign professionals in specialised fields that require advanced knowledge or technical expertise. These roles often include software engineering, medicine, finance, biotechnology, and academic research. Tech firms have been the biggest beneficiaries of the programme, using it to attract engineers and coders from India and China.The programme operates on a lottery system due to its popularity, with an annual cap of 85,000 visas — 65,000 general and 20,000 reserved for applicants with advanced degrees from US institutions. For many international students graduating from American universities, the H-1B serves as a bridge to long-term employment and, eventually, permanent residency.
Who will be most affected by the H-1B fee hike
- The sharp rise in fees will most directly affect new applicants and sponsoring companies, making the process prohibitively expensive.
- Indian professionals, who account for nearly 70% of all H-1B holders, face the greatest burden. Many Indian tech workers rely on US employment as a pathway to higher salaries and green cards.
- Chinese applicants also make up a large share, particularly in the fields of artificial intelligence, research, and STEM academia.
- Tech giants like Google, Microsoft, Amazon, and Meta can likely absorb the costs, but smaller firms and startups that depend on foreign talent may struggle, reducing opportunities for new graduates or niche specialists.
- Educational institutions and hospitals that bring in foreign researchers, doctors, and nurses could also feel the strain, impacting healthcare and academia.
What does this mean for foreign workers
For individuals aspiring to work in the US, the new fee structure presents a significant financial hurdle. Even if employers cover the fees, smaller firms may become reluctant to sponsor foreign workers, reducing the number of opportunities.This could lead to a brain drain away from the US, as highly skilled professionals may instead apply to countries like Canada, Australia, Germany, and the UK, which are actively expanding their skilled migration programmes. The move may also increase uncertainty for international students in the US, who often rely on the H-1B to remain in the country after completing their studies.The policy shift also raises concerns about equity in the job market, as it may favour wealthier applicants and companies while shutting out talent from modest backgrounds or resource-limited institutions.
Why did the US raise the fees
The Trump administration has framed the fee hike as part of its “America First” policy, designed to:
- Protect American workers by discouraging companies from hiring cheaper foreign labour.
- Generate additional revenue for immigration enforcement and border security.
- Discourage misuse of the H-1B system, which critics say some firms exploit to undercut wages.
However, opponents argue that the move is short-sighted and protectionist. They warn that while it may safeguard some American jobs in the short term, it risks damaging the country’s long-term competitiveness in innovation, research, and technology, as the US has historically relied on immigrant talent to drive growth in Silicon Valley and beyond.
Frequently asked questions
Will the fee hike affect current H-1B holders? No. The new fee applies only to fresh applications, not renewals for existing visa holders.Can employers cover the additional costs? Yes. Large multinational firms are expected to absorb the fee, but small and medium-sized enterprises may struggle, potentially reducing sponsorship opportunities.Does this affect other visa categories? At present, the hike is limited to H-1B visas, but the administration has hinted at the possibility of future reforms to other work visa categories.Are there alternatives to the H-1B visa? Yes. Skilled professionals may explore the O-1 visa (for individuals with extraordinary ability), employment-based green cards, or apply to other countries such as Canada and Australia, which have more accessible pathways for global talent.