Trump's $100,000 H-1B Visa Fee Stirs Uncertainty among Employers and Students

Mon Sep 29 2025 04:46:17 GMT+0300 (Eastern European Summer Time)

The recent decision by the Trump administration to impose a $100,000 fee on H-1B visas for skilled foreign workers has caused widespread confusion and concern amongst employers and potential visa holders, particularly impacting sectors reliant on high-skilled labor.

The Trump administration's announcement to implement a $100,000 fee for H-1B visas has raised alarms among employers and foreign professionals, especially from India. This abrupt policy change, effective immediately, aims to reform the H-1B visa system, which is crucial for U.S. companies needing specialized skills. Critics argue it could hinder U.S. labor supply and push wages higher, disproportionately affecting industries like healthcare and retail. Many aspiring immigrants and students express disappointment over the new costs tied to their future opportunities in the United States.

The Trump administration’s abrupt decision to impose a $100,000 fee on H-1B visas has shocked and bewildered employers and individuals from the U.S. to India and beyond.

Following the announcement on Friday, the White House attempted to ease concerns by clarifying that the fee does not apply to current visa holders, ensuring that H-1B employees traveling abroad would not be barred from re-entering the U.S. due to this fee. The policy took effect at 12:01 a.m. Eastern on Sunday.

Even with reassurances, many advisors are recommending that H-1B employees refrain from traveling until the situation is clearer, according to Leon Rodriguez, a partner at Seyfarth law firm and former director of U.S. Citizenship and Immigration Services.

What are H-1B visas and who uses them?

Established by the Immigration Act of 1990, H-1B visas are nonimmigrant visas allowing U.S. companies to employ foreign workers with specialized skills in fields where qualified American workers are in short supply. These visas are typically valid for three years, with the potential for an additional three-year extension. An estimated 700,000 H-1B visa holders currently reside in the U.S., along with about 500,000 dependents.

A significant percentage of these visas are issued for STEM jobs, particularly in technology. However, various sectors like healthcare, education, and finance also rely on H-1B visas to attract foreign talent.

The number of H-1B visas is capped at 65,000 annually, with an additional 20,000 for those holding advanced degrees, handed out through a lottery system. About three-quarters of the approved applications in 2023 originated from India.

What did Trump do?

The recent fee significantly increases the current application cost of $215, which also includes other minor processing fees. Commerce Secretary Howard Lutnick stated that the fee is meant to be applied annually, totaling $600,000 over the maximum allowed renewals. Nonetheless, the White House indicated the fee is a one-time charge that does not impact current visa holders.

In addition, Trump introduced a $1 million “gold card” visa aimed at wealthy individuals, which critics argue circumvents Congressional authority by dramatically altering the legal immigration landscape.

Why target H-1B visas?

Critics of the H-1B visa program contend it undermines American labor by attracting foreign professionals willing to accept lower wages. Many IT positions are filled by staffing companies in India that supply workers to U.S. corporations at a lesser wage than American employees.

The White House cited concerns about companies laying off American staff in favor of hiring lower-paid foreign workers as a primary reason for the policy shift.

What impact will the H-1B crackdown have?

Experts suggest that while many tech companies may absorb the additional $100,000 expenses to employ skilled foreign workers, sectors like healthcare, retail, and hospitality may struggle with the heightened costs. Moreover, these changes are predicted to decrease the labor supply, raising employment costs and potentially benefiting international competitors such as Canada, France, and Germany.

For many Indian students aspiring to further their education and careers in the U.S., this new regulation represents a hindrance. One student in New Delhi expressed that the modifications lead to reduced opportunities, especially as many rely on H-1B visas for future career development.