H-1B $100,000 Entry Fee: Impact, Exemptions, and Industry Challenges

H-1B Visa Latest News

• The White House has introduced a $100,000 entry fee for H-1B visa holders starting September 21, 2025, causing concern among Indian tech workers and students, the largest H-1B user group. 
• The fee applies only to new entrants to the US, while those already in the country extending or changing status are exempt.

H-1B $100,000 Entry Fee: What Changes, What’s Clear, and What’s Uncertain

• From September 21, 2025, no H-1B petition for workers outside the US will be approved unless the sponsoring employer pays $100,000 upfront. 
• Without proof of payment, consular stamping will be denied, blocking entry.

What Is Clear

• The fee applies to all H-1B petitions for workers outside the US, including those needing consular stamping after travel. 
• The Secretary of Homeland Security may waive the restriction for individuals, companies, or industries if deemed in the US national interest. 
• The measure will last for 12 months, after which agencies will review it before the White House decides on an extension.

What Remains Uncertain

• The proclamation does not clarify which sectors may qualify for waivers, though areas like healthcare, defence, and critical technology have historically been prioritised. 
• It also leaves ambiguity over the treatment of universities and non-profits, which are usually cap-exempt under H-1B rules but are not explicitly excluded in this order.

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Immigration Politics and the H-1B Debate in the US

• Immigration has become one of the most divisive issues in US politics, rising from 2.1% in 2012 to 14.6% in 2024 as a top voter concern. 
• Donald Trump’s rhetoric has consistently framed immigration — first low-skilled, now even skilled migration under the H-1B program — as a threat to American jobs and wages. 
• This narrative, rooted in economic anxiety and racial undertones, portrays immigrants as displacing the struggling working class already burdened by unemployment, inflation, low wages, and housing crises. 
• Trump and his camp now extend the same argument against H-1B workers, claiming they “steal” higher-paying tech jobs, echoing the themes of his earlier anti-immigrant campaigns.

Criticism of H-1B Visa

• Nativist MAGA (Make America Great Again) Republicans argue that Indian workers are “stealing” American jobs and lowering wages. 
• They claim H-1B visas, meant for top talent, are used by tech firms to hire mid-level staff at cheaper salaries. 
• Critics point to the salary gap: in FY2023, 70% of approved petitions for Indians were under $100,000, below the US IT median salary of $104,420.

Industry Viewpoint

• Industry leaders counter that H-1B visas are essential to fill America’s skills gap, especially in STEM fields. 
• Data shows that China (3.57 million) and India (2.55 million) produce far more STEM graduates than the US (820,000), underlining the need for global talent.

India at the Epicentre of H-1B Impact

• India, the largest user of the H-1B system with 71% of approvals in FY2024 (far ahead of China at 12–13%), faces the greatest disruption from the $100,000 entry fee. 
• The new rule threatens the Optional Practical Training (OPT)-to-H-1B pathway for young Indian graduates, as employers may avoid the steep cost. 
• Families already on H-1Bs risk travel-related disruptions. 
• For India’s IT service firms and Global Capability Centres (GCCs), staff rotations to the US become prohibitively expensive, likely shifting more project work to offshore hubs like Bengaluru, Hyderabad, and Pune.

Industries Most Impacted by the H-1B $100,000 Fee

• Big Tech and Cloud Firms – Amazon, with 12,000 approvals in early 2025, along with Microsoft, Meta, Google, and Apple, face massive cost hikes as each H-1B hire now costs $100,000 extra.
• IT Service Providers – Indian majors like Infosys, TCS, Wipro, HCL and global firms like Cognizant, Capgemini, and IBM depend on H-1Bs for onsite delivery. The levy hits junior roles, central to their model.
• Consulting and Finance – Firms such as JPMorgan Chase use H-1Bs for STEM and quantitative roles. The new surcharge significantly raises costs for these specialised hires.
• Startups and Mid-Size Companies – With limited financial capacity, smaller firms are most vulnerable. Many will delay recruitment or offshore roles to avoid the fee burden.
• Universities and Research Institutions – Postdoctoral researchers and specialist staff often rely on H-1Bs. Without exemptions, academic employers face unsustainable costs, affecting research and innovation.

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