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Trump’s $100,000 H-1B Visa Shock: Will the Hike Drive Indian Talent Away from the US?

  • Trump’s September 2025 proclamation imposes unprecedented $100,000 application fees for H-1B visas
  • Traditional F-1 to H-1B pathway will become unviable as visa costs exceed entry-level salaries
  • Companies such as TCS, Infosys, and WIPRO, which have traditionally relied heavily on the H-1B visa, are now accelerating offshore development to reduce their dependency on H-1B workers.

The American dream just became significantly more expensive.The H-1B visa is a temporary work permit that allows US companies to hire skilled foreign professionals in speciality occupations like technology, healthcare, and engineering, and more. On September 19, 2025, President Donald Trump signed a proclamation imposing a $100,000 (₹88.7 lakh) application fee for H-1B visas, effective from September 21, 2025.

This seismic shift has sent shockwaves through India’s tech corridors and left thousands of aspiring professionals reconsidering their career trajectories.

H-1B Visa Fee Increase in 2025: What Indian Professionals Need to Know

If you’re an Indian student or professional dreaming of working in the US, this policy change fundamentally alters your career planning. Here’s what you need to understand:

For Current Students in the US:

  • If you’re already studying in America, this won’t affect your current status, or post-graduation employment prospects.
  • The traditional pathway from F-1 student visa to H-1B work visa just became financially prohibitive for most employers in the future. 
  • You’ll need to rethink your career strategy and consider alternative paths or countries

     

Entry-level IT jobs and healthcare positions now face visa costs exceeding annual starting salaries. Employers must reconsider H-1B sponsorship strategies as visa fees surpass worker compensation in many cases.

Indian H-1B Visa Holders: Impact on Tech and Healthcare Workers

Indians dominate the H-1B programme, making up more than 70% of the recipients in recent years. China was the second-largest source, making up about 12% of beneficiaries.

The H-1B programme historically served as the primary immigration pathway for Indian IT professionals and medical graduates. Engineering graduates from Indian universities relied on these work visas for Silicon Valley careers and specialist medical positions.

Indian doctors working in rural American hospitals face particular challenges, as healthcare H-1B applications become financially prohibitive for smaller medical facilities.

Indian Companies Adapting to H-1B Visa Changes

Major IT services companies including TCS, Infosys, and Wipro are restructuring operations to reduce H-1B dependency. 

  • Major firms are accelerating offshore development capabilities and local hiring in client markets
  • Rising salaries in India’s tech sector mean your ROI from staying local is higher than ever
  • Tech consulting firms shifting towards remote delivery models and nearshore operations to maintain cost competitiveness
  • Indian software companies invest heavily in Canada, UK, and European offices for client proximity

H-1B Fee Hike Impact on Students Studying in USA

The $100,000 H-1B visa fee does NOT apply to students converting from F-1, OPT, or STEM OPT status currently. 

Students Currently in USA (F-1 Status)

You are NOT affected by the $100,000 fee.

  • Normal H-1B application fees apply when you graduate
  • Employers will sponsor you at regular costs
  • Your study-to-work path is unchanged
  • Campus recruiting continues as normal

Students on OPT or STEM OPT

You are NOT affected by the $100,000 fee.

  • Converting from OPT to H-1B costs normal fees
  • Converting from STEM OPT to H-1B costs normal fees
  • STEM OPT gives you 36 months post-study work opportunity

Alternative Visa Options for Indians

Canada Express Entry and Australian skilled migration programmes offer competitive alternatives to US visas. These immigration pathways provide permanent residency options without employer dependency or lottery systems.

Popular alternatives include:

  • Canada Express Entry: Points-based system for skilled workers with pathway to permanent residency
  • Australia Subclass 189/190: Skilled independent and state-nominated visas leading to PR
  • Germany Blue Card: EU work permit for university graduates
  • Netherlands Highly Skilled Migrant: Fast-track work authorisation for skilled professionals with employer sponsorship
  • Singapore Employment Pass: Tech-focused work permits for professionals
  • UK Global Talent Visa: For exceptional talent in tech, sciences, and digital technology
  • New Zealand Skilled Migrant Category: Points-based system with work-to-residence pathway

Best Immigration Strategies for Indian Students in 2026

The current immigration landscape requires diversified approaches across multiple countries rather than US-focused strategies. Indian professionals should explore Canada PR, Australia skilled migration, and European Blue Card programmes simultaneously.

Student-Centric Strategies:

  • Choose programs in high-demand sectors such as AI, cybersecurity, and data science to increase employability and post-study work options.
  • Target countries with strong post-study work pathways, like Canada’s PGWP, Australia’s Temporary Graduate Visa, or Europe’s graduate work extensions, which can lead to permanent residency.
  • Plan your course and electives to match skilled migration criteria, ensuring your degree aligns with future residence eligibility.
  • Develop cross-cultural and remote work skills to increase employability in multinational roles during or after your studies.

Conclusion: Adapting to New Realities

The $100,000 H-1B visa fee represents a fundamental shift in global talent mobility patterns. Indian professionals must adapt by diversifying international career strategies and exploring emerging opportunities beyond traditional destinations.This disruption may benefit India’s domestic economy by retaining talent whilst encouraging international companies to establish stronger operations within the country. 

Navigate Your US Study Abroad Journey with Expert Guidance

While the H-1B landscape evolves, pursuing higher education in the USA remains a strategic pathway for Indian students. Our expert counsellors at AdmitX have successfully guided thousands of Indian students to top US universities with comprehensive support including:

Book your FREE study-abroad counselling session today! 

Frequently Asked Questions

When did Trump increase H-1B visa fees to $100,000 and what is the exact amount in Indian Rupees?

President Trump imposed a $100,000 (₹88.7 lakh) one-time application fee for new H-1B visa petitions on September 19, 2025, effective from September 21, 2025. This fee only applies to new visa applications and does not affect renewals or current visa holders.

Major Indian IT companies like TCS, Infosys, and Wipro are restructuring operations to reduce H-1B dependency by accelerating offshore development capabilities, increasing local hiring in client markets, and investing heavily in Canada, UK, and European offices for client proximity.

No, the $100,000 fee does not apply to renewals, extensions, or transfers for current H-1B holders. It only applies to new H-1B petition applications submitted after September 21, 2025.

Yes, current H-1B holders with valid visas can travel and re-enter the United States without paying the new $100,000 fee. The fee restriction only applies to new petition applications.

Previously, employers paid between $2,000 to $5,000 (₹1.7 – 4.4L) per H-1B petition, depending on the employer’s size. The new fee represents a 20-50x increase from previous costs.

Currently, there are no confirmed exemptions for non-profit organizations, universities, or research institutions from the new $100,000 fee. All new H-1B petitions appear subject to the increased cost regardless of employer type.

Canada Express Entry offers the fastest pathway with permanent residency options, followed by Singapore Employment Pass for tech professionals, Netherlands Highly Skilled Migrant visa, and Australia Subclass 189/190 skilled visas.

The new $100,000 fee applies only to new H-1B petitions filed after September 2025. It does not affect current F-1 students transitioning to H-1B or OPT/STEM OPT participants transitioning to H-1B. However, students should still consider diversifying immigration options by exploring Canada, Australia, or other countries with easier post-study work pathways..

The $100,000 (₹88.7 lakh) fee often exceeds the annual starting salaries for entry-level IT positions around $60,000-$90,000 (₹53.2 – 79.8L), making sponsorship financially unviable for most employers hiring fresh graduates.

Top destinations include Canada (Express Entry), Australia (Subclass 189/190), Germany (Blue Card), Netherlands (HSM visa), Singapore (Employment Pass), UK (Global Talent), and New Zealand (Skilled Migrant Category) – all offering clearer pathways than the US H-1B lottery system.

If you are an aspirant looking to study at your dream university, book an appointment with AdmitX today and start your applications early to avail yourself of all the benefits.

Prabhat Agrawal - Founder - AdmitX Study Abroad Consultant

Prabhat Agrawal

Prabhat, the founder of AdmitX, is a recognized expert in international education and admission consulting. Prabhat earned a Master’s degree in Management from ESCP Business School with a 100% scholarship, where he developed his skills in business and AI and worked with cutting-edge startups. Prabhat has helped over 1,000+ students get into global universities with maximum possible scholarships over the last 4 years. 

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