US Clarifies H-1B Visa Rules as India Raises Concerns

US President Donald Trump has signed a proclamation imposing a massive $100,000 fee on new H-1B visa applications. The order, titled “Restriction on Entry of Certain Nonimmigrant Workers,” took effect on September 21, 2025. This move targets companies sponsoring foreign workers for these specialized visas. It has sent shockwaves through the global tech industry and diplomatic channels.

The White House clarified that the fee applies only to new petitions filed after the effective date. Current visa holders and those with pending applications are exempt from the sudden financial demand. According to Reuters, the proclamation is intended to last for one year but may be extended.

Policy Details and Immediate Industry Chaos

The new rule mandates that employers must pay the fee prior to filing a petition. Petitions submitted without proof of payment will be denied. The United States Citizenship and Immigration Services (USCIS) confirmed the fee applies only to new, prospective petitions not yet filed.

Major tech firms reacted swiftly to the announcement. Companies like Microsoft, Amazon, and Meta advised employees on H-1B visas to avoid international travel. This caused immediate confusion and panic, with reports of passengers disembarking planes mid-boarding. Flight prices from India to the US reportedly surged within hours.

Broad Impact on US-India Relations and Tech Sector

The decision disproportionately affects Indian nationals. They received over 70% of all H-1B visas approved in the previous fiscal year. India’s Ministry of External Affairs expressed deep concern. It warned the policy could have “humanitarian consequences” by disrupting families and hoped for a suitable resolution.

The US Chamber of Commerce also raised alarms. It stated it was concerned about the impact on employees, their families, and employers. Industry analysts suggest the fee could force companies to accelerate local hiring in the US. It may also push Indian IT firms to strengthen their global delivery models from within India.

The new H-1B visa fee structure represents a seismic shift in US immigration policy. Its long-term effects on innovation, bilateral trade, and the global talent pool remain highly uncertain. The tech industry awaits further clarity on the H-1B visa fee implementation.

Info at your fingertips

Who does the new $100,000 H-1B fee apply to?

It applies only to new H-1B visa petitions filed on or after September 21, 2025. Current visa holders, those with pending applications, and renewals are exempt from the fee.

Can current H-1B visa holders travel outside the US?

Yes. The White House and USCIS clarified that current visa holders can continue to travel to and from the US without being charged the new fee.

Which companies are most affected by this change?

Major tech firms that heavily rely on H-1B talent are most affected. This includes companies like Amazon, Microsoft, Meta, and Tata Consultancy Services, which are among the top sponsors.

How has the Indian government responded?

India’s government expressed concern over the humanitarian impact and disruption to families. It is studying the full implications and engaging with industry stakeholders on the path forward.

Is the $100,000 fee an annual payment?

No. The White House specified it is a one-time fee per petition, not an annual recurring charge for the company or the employee.

Could this policy actually benefit India?

Some analysts suggest it could retain top tech talent within India, boosting local innovation and startups. However, this is viewed as a significant near-term challenge for the workforce and industry.