In a move that has sent shockwaves through the global technology industry and diplomatic circles alike, President Donald Trump’s administration announced the imposition of a $100,000 fee on new H-1B visa applications, a dramatic escalation in the United States’ ongoing overhaul of its immigration system. The measure, unveiled late on Friday, September 19, 2025, is set to take effect with the upcoming lottery cycle, marking what many observers are calling the most aggressive attempt yet to restrict legal employment-based immigration since Trump took office in January.
The H-1B visa program, created in 1990, has long allowed U.S. companies to hire foreign workers for specialized roles in fields such as technology, engineering, and medicine. Each year, 85,000 new visas are distributed through a lottery system, with an additional exemption for 20,000 workers holding advanced degrees. The program has become a linchpin for major American tech firms—Amazon, Google, Meta, Apple, and Microsoft among them—who rely on global talent to maintain their competitive edge. According to the U.S. Citizenship and Immigration Services, Amazon topped the list of H-1B employers in the first half of 2025, employing more than 14,000 H-1B holders as of June 30. In California alone, over 78,000 H-1B workers were hired in 2024, underscoring Silicon Valley’s dependence on international expertise.
But the new fee—more than 60 times the current $1,500 administrative charge—has rattled both companies and foreign governments. India, which accounted for just over 70% of all H-1B visas issued last year, responded swiftly and sharply. In a statement released on September 20, India’s Ministry of External Affairs warned that the measure would have “humanitarian consequences by way of the disruption caused for families.” The government expressed hope that such disruptions could be “addressed suitably by the US authorities,” and emphasized the deep people-to-people ties and mutual benefits that the exchange of skilled workers has fostered between the two nations.
India’s leading trade body, Nasscom, which represents the country’s $283 billion IT and business process outsourcing sector, echoed these concerns. “A one-day deadline creates considerable uncertainty for businesses, professionals, and students across the world,” Nasscom stated, referring to the abrupt implementation timeline. The group warned that the sudden change would not only disrupt Indian nationals but could also jeopardize ongoing onshore projects for technology services firms. Nasscom further cautioned that such a significant policy shift should be “introduced with adequate transition periods, allowing organizations and individuals to plan effectively and minimize disruption.”
The White House, for its part, has framed the fee as a necessary step to curb abuses of the visa system. “President Trump promised to put American workers first, and this commonsense action does just that by discouraging companies from spamming the system and driving down wages,” White House spokeswoman Taylor Rogers told CNBC. The administration argues that the new cost will ensure that only workers with the most specialized and rarefied skill sets are sponsored, preventing companies from using the program for entry-level roles or to undercut American wages. The order also includes a provision for “case-by-case exemptions if in the national interest,” according to a White House statement.
Some have questioned whether the fee is annual or a one-time charge. While initial reports described it as an annual cost, the White House clarified that it is a one-time fee, applicable only to new applicants and not to current visa holders or renewals. The change will not affect 2025 lottery winners, according to officials, but will apply to all new applications starting with the next lottery cycle. The order specifically targets applicants currently outside the United States, requiring them to accompany or supplement their applications with the $100,000 payment.
The announcement has prompted immediate action from major U.S. employers. Internal communications reviewed by Reuters and CNBC reveal that Amazon, Microsoft, JPMorgan Chase, and Goldman Sachs have all advised their H-1B visa-holding employees to remain in the United States or, for those currently abroad, to return before the new policy takes effect. Amazon’s advisory, for instance, warned employees unable to return before the deadline to avoid attempting U.S. re-entry “until further guidance is provided.” Goldman Sachs’ global head of human capital management, Jacqueline Arthur, acknowledged in a memo that “this is an uncertain time for our people on H-1B visas and your families.”
The policy change arrives at a moment of heightened tension between the U.S. and India. Only weeks earlier, the U.S. imposed tariffs on India for its purchases of Russian oil, leading to a standoff in trade negotiations. The U.S. exported $41.5 billion in goods to India in 2024, while importing more than double that amount. India’s commerce minister, Piyush Goyal, is scheduled to visit Washington for trade talks, underscoring the high stakes and interconnectedness of economic relations between the two countries.
Other nations are also scrambling to respond. South Korea’s Ministry of Foreign Affairs announced it would “comprehensively assess the impact of these measures on the advancement of [South Korean] companies and professional talents into the US market and engage in necessary communication with the US.” The urgency is heightened by recent events, including the detention of hundreds of South Koreans during a U.S. immigration raid at a Hyundai-LG battery factory in Georgia.
Supporters of the H-1B program, including prominent tech entrepreneurs like Elon Musk, have repeatedly warned that restricting access to highly skilled foreign workers could undermine the U.S.’s position in the global technology race, particularly against China. Critics, meanwhile, argue that the program has been abused to replace qualified American workers with lower-paid foreign labor and to reduce labor protections. According to government data, Indian citizens are the largest beneficiaries of H-1B visas, followed by Chinese nationals, who accounted for 11.7% last year.
The Trump administration’s broader strategy has included the launch of a new “Gold Card” visa, offering permanent residency to individuals willing to pay $1 million or to companies sponsoring workers for $2 million. Trump likened the initiative to a “signing bonus in baseball or football,” suggesting it would attract “extraordinary workers” to the U.S. However, the focus remains on tightening the criteria for temporary skilled workers, with the administration determined to ensure that only the “best and brightest” are admitted.
As policymakers, business leaders, and families grapple with the implications of the new fee, the coming weeks will reveal whether the disruptions can indeed be “addressed suitably”—or whether America’s high-tech edge will be dulled by a policy intended to sharpen it.
