In a move that has sent shockwaves across the global technology sector, US President Donald Trump signed a sweeping order on September 20, 2025, imposing a $100,000 fee on new H-1B visa applications. The proclamation, which took effect on September 21, has drawn fierce criticism from Indian political leaders, business groups, and tech industry stakeholders, given that Indians account for a staggering 71% of H-1B visa holders.
The H-1B visa program, long considered a lifeline for skilled professionals seeking work in the United States, now faces an uncertain future. According to Devdiscourse and Hindustan Times, the White House clarified the fee is a one-time payment per petition—contrary to initial reports suggesting an annual charge—and applies only to new applicants in the upcoming lottery cycle. Current visa holders and those seeking renewals are exempt, a point emphasized by White House press secretary Karoline Leavitt, who stated, “This is NOT an annual fee. It’s a one-time fee that applies only to the petition. H-1B visa holders can leave and re-enter the country to the same extent as they normally would… This applies only to new visas, not renewals, and not current visa holders.”
The impact of this policy change is expected to be most acute in India, where the technology and IT sectors have long relied on the H-1B pathway for opportunities abroad. The Indian embassy in Washington, D.C., quickly issued an emergency assistance number for Indian nationals seeking support, underscoring the magnitude of the disruption. The Ministry of External Affairs (MEA) in New Delhi warned that the measure could have “humanitarian consequences by way of the disruption caused for families,” expressing hope that “these disruptions can be addressed suitably by the US authorities.”
The backlash in India was swift and vociferous. Congress chief Mallikarjun Kharge called the move a “return gift for PM Modi” from President Trump, noting, “USD 100,000 annual fee on H-1B visas hits Indian tech workers the hardest, 70 per cent of H-1B visa holders are Indians.” He further alleged a shift in India’s foreign policy from “safeguarding national interest” to “bear hugs, hollow slogans, concerts.”
Rahul Gandhi, Leader of Opposition in the Lok Sabha, did not mince words, branding Prime Minister Narendra Modi a “weak” Prime Minister for what he characterized as a failure to protect Indian interests abroad. Echoing these sentiments, Congress leader Pawan Khera accused Modi of “staying silent on a series of decisions taken by US President Donald Trump that, according to him, went against India's interests.” Khera listed several instances, from trade threats to the imposition of tariffs and the Chabahar Port decision, where he claimed the Prime Minister remained silent.
Other opposition leaders joined the chorus. Samajwadi Party chief Akhilesh Yadav described the government’s foreign policy as “weak,” questioning the central government’s preparedness to deal with the US move and warning of its potential to harm the IT and technology sectors. Congress MP Manish Tewari went further, alleging a broader pattern of US “belligerence” toward India, referencing recent diplomatic tensions, premature ceasefire announcements, and increased tariffs.
Regional leaders also weighed in. Telangana Chief Minister Revanth Reddy called the hike in H-1B visa fees “totally unacceptable in the historical context of Indo-American relationships,” urging Prime Minister Modi and External Affairs Minister S Jaishankar to address the issue on a “war footing.” Reddy warned, “The suffering for our Telugu techies will be unimaginable.”
The economic ramifications of the new fee are already being felt. Major tech companies—Amazon, Tata Consultancy Services, Microsoft, Meta, and Apple—are the largest users of H-1B visas, according to Bloomberg data cited by Hindustan Times. These companies swiftly issued advisories warning employees to avoid international travel amid the confusion. Goldman Sachs cautioned its H-1B employees on international travel as well, citing uncertainty and the need for further clarity.
The US Chamber of Commerce, representing the interests of American businesses, expressed deep concern about the policy’s impact. In a statement, the Chamber said, “We’re concerned about the impact on employees, their families, and employers. We’re working with the Administration and our members to understand the full implications and the best path forward.”
Indian industry leaders are also grappling with the fallout. Former Nasscom chairman BVR Mohan Reddy described the move as a “significant cost challenge” for Indian IT companies, predicting near-term disruption but suggesting it could accelerate local hiring in the US and push firms up the value chain. S Mahendra Dev, chairman of the Economic Advisory Council to the Prime Minister, offered a more optimistic outlook, suggesting that India’s push for “Viksit Bharat” (Developed India) could benefit if skilled workers stay home and fuel the growth of startups in cities like Bengaluru, Hyderabad, and Gurgaon.
The government of India, for its part, is actively engaging with the US administration and the IT industry to find a way forward. Commerce and Industry Minister Piyush Goyal is set to lead a delegation to the US for high-level trade talks, hoping to reach a mutually beneficial agreement in the wake of the visa and tariff tensions.
Not all reactions were negative. Karnataka Home Minister G Parmeshwara suggested the decision could be turned to India’s advantage, stating, “One way, it is discouraging. The other way, we would like to make use of it to our advantage.” The Telangana BJP chief, Ram Chander Rao, echoed this by endorsing Prime Minister Modi’s call for self-reliance, arguing that the US move reflects a targeted approach to India’s growing economy and workforce.
Yet, the prevailing sentiment remains one of anxiety and urgency. Congress leader Supriya Shrinate warned that the move would negatively impact remittances to India and limit opportunities for young professionals. UP Congress chief Ajay Rai went so far as to call the fee hike “an insult to Indians.”
In the US, the policy has sparked panic among H-1B aspirants and their families. Reports surfaced of Indian passengers disembarking planes mid-boarding, and flight fares between India and the US soared as individuals scrambled to beat the deadline. Immigration attorneys described the situation as “total chaos,” with only a day’s notice before the rule took effect.
As the dust settles, both governments are studying the full implications of the measure. The US Citizenship and Immigration Services (USCIS) issued guidelines clarifying that only new, prospective petitions filed after September 21 are subject to the fee. The measure is set to remain in place for one year, unless extended or renewed.
With India and the US now at a diplomatic crossroads, the future of skilled migration and tech collaboration hangs in the balance. The coming weeks will reveal whether the two nations can navigate this crisis and preserve the vital ties that have long underpinned their economic and strategic partnership.