This has sent ripples among the technical circles more so in India, as a huge proportion of Indian professionals rely on H-1B visas to work in the U.S.

There are many details to be described below of what is happening, who is impacted, the reason, exceptions, how big tech is reacting, due dates, and fee details, etc.

1. What’s happening?

• President Trump signed a proclamation on September 19, 2025, which stated that any new H-1B petition received after 12:01 a.m. Eastern Daylight Time on September 21, 2025, must have a fee of $100,000.
  
• Such charge is a single fee, not a recurrent expense and is applicable in the case of first-time applications (not renewals).
  
• Notably, it is not applicable to current H-1B visa holders whose visas were granted before the deadline, as well as renewal petitions submitted by the latter.
  

2. Who is affected?

• Indian workers / aspirants: H-1B visa or Indian visa applicants: Indian workers and aspirants are directly affected by the visas since a significant percentage of H-1B visa holders and applicants are Indians.
  
• Employers / U.S. companies: The companies that currently sponsor H-1B workers now have a huge extra expense. This will be particularly a blow to companies where a high number of new H-1B petitions are being submitted (on fresh hires).
  
• Smaller firms / outsourcing companies: These might become overwhelmed by the new charge and rethink the H-1B hiring talent.
  
• Big tech / large organizations may be able to shoulder the price, but most of them worry about margin, staffing approach, and talent accessibility.
  

3. Purpose

Why is the cost of such a fee high in the U.S.? Some stated objectives:

• Not encourage the wrong use of the H-1B program (e.g. companies to underpay foreign talent through it).
  
• “Put American workers first”: make it more expensive to hire foreign workers than domestic workers in order to make employers more competitive in hiring domestically.
  
• Increase income and decrease foreign employees with low salaries.
  
• It belongs to larger programs of immigration reform such as to possible modifications to prevailing wages regulations and criteria of selection.

4. Exceptions

This new fee is not applicable to all people. Key exceptions include:

• Existing H-1B visa holders: H-1B holders who have a valid H-1B status prior to September 21, 2025, are not subject to this policy.
  
• Renewals: H-1B visa renewals (extensions) are not included in the new fee.
  
• National interest exemption: The proclamation provides the exemption in case of employment of the worker in U.S. national interest. Nonetheless, standards and guidelines to this are not clear at the moment.
  

5. Big Tech Response

The big technology firms, who heavily depend on H-1B visas, are responding slowly:

• Other companies have cautioned their workers not to leave the U.S. before they get clarifications on the same as they might get into trouble reentry or fresh petitions.
  
• Compete America is a tech association that has urged the government of the U.S. to retract or revise the rule since it can slow down innovation and competitiveness in the international market.
  
• Other firms might choose to hire employees already in H-1B or relocate the labor to foreign nations instead of submitting new applications.
  

6. Deadline

• It became effective on September 21, 2025 at 12:01 a.m. EDT. Any subsequent H-1B petition submitted thereafter will have to pay the 100,000 fee.
  
• The new fee is not applicable to petitions submitted prior to this date.
  

7. Fee Details

• The new fee, which is $100,000 USD, becomes an added cost to the already existing fees of filing and the processing of H-1B visa.
  
• In the past, the average application fee was between a few thousand dollars (approximately between 2000-5000 dollars, depending on the size of the employer).
  
• The cost structure of the entire program is considerably higher and many of the new hires will be cost-prohibitive.
  

Effects & Risks for Indian Workers & Employers

On Indian Workers

• Barrier to entry: The high cost burden might scare away many of the aspirants.
  
• Job opportunities shrink: The number of positions can be reduced to new foreigners, in particular, early-career technological specialists.
  
• Incentive to stay: Existing H-1B workers might be interested in remaining in the U.S. position instead of returning to or swapping with new visas.
  
• Competition intensifies: With better skills and higher wages, more skilled and better paid candidates can have an advantage in the lottery or choice.
  
  

On Employers & IT Firms

• High cost: The companies might minimize the number of new H-1B recruits or rationale the expense on the high-value posts.
  
• Shift strategies: The companies can relocate work to Indian centers, expand international ability centers or employ alternative visa pathways.
  
• Margin pressure: The pressure of additional cost might be hard to bear by smaller outsourcing companies.
  
• Reduced innovation access: The limitation may interfere with access to various global talents.
  
  

According to some analysts, this fee can cut 5,500 work authorizations annually in the U.S. technological field.

Conclusion

A very radical change in the policy of immigrants in the United States is the introduction of a $100,000 fee (one-time payment) of new H-1B visa petitions. Although the change does not influence the existing H-1B holders but only addresses the new applicants, its ripple effects will be experienced significantly in Indian tech professionals and U.S. employers. Firms will need to reconsider their recruitment process, and Indian candidates have a more difficult entry point. The interpretation of the rule, exemptions, and how the law will be challenged will determine the long-term effect.

Meanwhile, stakeholders are recommended to follow official instructions and legal entertainment.

Stay with us for more.

FAQs

Q-1. What is the new $100,000 H-1B fee?
Ans- It is a non-refundable fee that is required to accompany the new H-1B visa applications after the 21st of September, 2025. It is not applicable to renewals or persons who are already in possession of H-1B.

Q-2. Who is affected by the new fee?
Ans- Directly affected are new H-1B applicants, a significant number of Indian technology hopefuls, and employers that want to sponsor fresh foreign workers.

Q-3. Why was this fee introduced?
Ans- The above objective is to deter the abuse of the H-1B program, domestic hiring, and safeguard Americans. It also belongs to the larger immigration reform.

Q-4. Are there any exemptions to the fee?
Ans- Yes. Renewal petitions and current H-1B holders are exempt. Moreover, there are cases that can be treated as national interest exemption, but the information is not yet evident.

Q-5. What is big tech’s reaction?
Ans- Large technology companies are concerned.Other pieces of advice include workers not travelling and trade bodies/ associations are calling on review or rethinking the policy.