Key Facts
US President Donald Trump signed a proclamation imposing a $100,000 annual fee on H-1B visa applications, effective September 21, 2025.
This is a dramatic jump from the earlier $1,700–$4,500 fee range, marking one of the most sweeping changes in the US visa system in decades.
Immediate Industry Response
- Microsoft issued an urgent advisory asking H-1B and H-4 visa holders to return to the US by September 21 or remain in-country until further clarity.
- Meta told employees to stay inside the US for at least two weeks, warning of potential disruptions.
- Amazon, Google, and Indian IT majors are reviewing emergency plans to manage their workforces.
Background and Rationale
Trump argued the policy targets “systemic abuse” of the H-1B program, claiming US jobs were being replaced with lower-paid foreign workers.
- Commerce Secretary Howard Lutnick said training roles would no longer be allowed under H-1B:
- “If you’re going to train people, you’re going to train Americans.”
Impact on Indian Workers
- Indians hold 71% of all H-1B visas, making them the most affected.
- Top recipients (FY25):
- Amazon – 10,044
- Tata Consultancy Services (TCS) – 5,505
- Microsoft – 5,189
- Meta – 5,123
- Indian IT companies received 13% of all FY25 H-1Bs.
This move could reshape India-US tech ties and career paths for thousands of skilled professionals.
H4 Visa Concerns
- No direct changes to H4 visas yet.
- Experts warn the Trump administration may revisit H4 EAD (work authorization) — a long-standing target since Trump’s first term.
- If revoked, spouses of H-1B holders could lose the ability to work in the US.
Economic Arguments
- The Trump administration estimates the $100,000 fee will generate over $100 billion in revenue.
- Officials say the hike will:
- Reduce overall applications
- Focus on “extraordinary talent”
- Protect American wages from overseas competition
Industry Adaptation
- Indian IT giants like TCS, Infosys, and Wipro have cut H-1B dependency to 20–50%, with over 50% local hiring in the US.
- Between FY15–FY23, approved H-1B petitions for top Indian firms fell by 56%.
- Analysts believe these firms are better insulated now, but individual workers remain vulnerable.
FAQs: Trump H1B & H4 Visa Changes (September 2025)
1. When will the new H1B visa fee take effect?
The $100,000 annual H1B fee takes effect on September 21, 2025. Any applications filed on or after that date will be subject to the new fee.
2. Does the $100,000 fee apply to existing H1B visa holders?
No. The new fee applies only to new applications and renewals filed after September 21, 2025. Existing valid visas remain unaffected until their renewal date.
3. Will H4 visas be affected by this order?
The proclamation did not directly change H4 dependent visas, but immigration experts warn that H4 EAD (work permits) could be the administration’s next target.
4. Why did Trump raise the H1B fee to $100,000?
The Trump administration argues the change will:
- Prevent “systemic abuse” of the program
- Reduce applications from outsourcing firms
- Generate over $100 billion in revenue for the US Treasury
- Prioritize “extraordinary talent”
5. How will Indian workers be impacted?
Since 71% of H1B visas are held by Indians, they are the most impacted group. Indian IT firms like TCS, Infosys, and Wipro may shift further to local hiring in the US to reduce dependency.
6. What should H1B visa holders do now?
- Companies like Microsoft and Meta have advised H1B employees to stay in the US until policies are clearer.
- Traveling outside the US after September 21 may pose risks for re-entry if renewals are needed.
7. Will this affect F1 student visas or OPT?
Not directly. The proclamation targets H1B visas, not student visas. However, restrictions on F1 to H1B transitions could follow, given Trump’s immigration stance.
8. How are tech companies responding?
Tech majors like Amazon, Microsoft, and Meta have issued urgent advisories and are exploring increased local hiring and alternative visa pathways to manage talent shortages.
Related Articles
Leave a Reply