Trump’s $100,000 H-1B Visa Fee Sparks Tech Industry Turmoil

Washington, D.C., September 21, 2025 — President Donald Trump has signed a sweeping executive order that imposes a $100,000 fee on new H-1B visa applications, triggering immediate shockwaves across the U.S. technology sector and among Indian professionals who form the majority of H-1B workers.

The rule, which took effect at 12:01 a.m. ET today, applies only to new H-1B petitions. Existing visa holders and those seeking renewals are not subject to the fee. However, legal experts warn that the move marks one of the most restrictive changes to U.S. skilled immigration in decades.

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Key Provisions of the Executive Order

1. $100,000 fee per application: U.S. companies sponsoring a foreign worker on a new H-1B must pay this fee when submitting a petition.

2. Effective immediately: The policy applies to all applications filed from September 21, 2025, onward.

3. Exemptions: Current H-1B holders and renewals/extensions are not included.

4. Enforcement: Petitions without the required payment will be denied, and applicants will be barred from entry.

The White House argues that the measure will “protect the American labor market” and ensure that only the “best of the best” are sponsored.

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Tech Sector Fallout

Industry giants including Amazon, Microsoft, and Meta have issued advisories to employees, urging current H-1B holders to avoid international travel while the implications of the policy are assessed.

1. Immigration lawyers say that although current holders are exempt, visa stamping abroad could create practical complications.

2. The Indian IT workforce, which makes up more than two-thirds of H-1B visa holders, is expected to be the most affected.

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Global Reactions

1. India’s government has expressed concern, warning of humanitarian consequences for families caught in limbo.

2. Business groups have flagged potential damage to U.S.–India trade relations and the global tech talent pipeline.

3. Legal challenges are already being prepared, with critics calling the fee “punitive” and “discriminatory.”

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Official Justification

Commerce Secretary Howard Lutnick defended the move, stating:

“Companies must now carefully decide whether a candidate is worth this fee or whether they should consider hiring an American graduate instead.”

The Trump administration maintains that the measure addresses misuse of the H-1B program while prioritizing U.S. workers.

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The Way Forward for Indian Tech Workers

For Indian professionals, who account for the majority of H-1B visa holders, this executive order signals a turning point. The road ahead will likely involve:

1. Exploring Alternatives: Workers may increasingly consider opportunities in Canada, Europe, and emerging Asian hubs that are actively courting skilled talent.

2. Strengthening Remote Work Options: With companies reluctant to bear the cost of new U.S. petitions, remote employment models could expand, allowing Indian talent to contribute without relocating.

3. Upskilling and Specialization: Given the administration’s stated aim of admitting only the “best of the best,” workers with advanced expertise in AI, cybersecurity, and niche technologies may remain in demand despite the fee.

4. Legal and Policy Engagement: Advocacy by Indian business groups, the Indian government, and multinational corporations will be crucial in challenging or reshaping the policy.

While the order raises immediate uncertainty, it may also encourage diversification of career pathways and highlight the global demand for Indian tech expertise. The next few months—marked by legal battles, diplomatic negotiations, and corporate strategy shifts—will determine how far-reaching the consequences will be for Indian workers aspiring to build futures in the U.S.