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This new fee is expected to hit Indian workers the hardest, as they form the majority of H-1B visa holders.
The median salary for H-1B holders is reportedly around $118,000 per year (AFP)
US President Donald Trump signed a new executive order on Friday that imposes a $100,000 annual application fee for all H-1B visa petitions. This is a major change to how the H-1B visa program works and is expected to affect thousands of skilled foreign workers, especially Indians, who make up the largest share of H-1B visa holders in the US.
What Is The New H-1B Visa Application Rule?
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Under the new executive order, anyone applying for an H-1B visa must now pay a $100,000 fee every year for their application to be processed. This rule applies to new applications as well as any petitions that supplement existing ones.
Employers must keep proof of the payment. The Secretary of State will confirm whether payment was made during the visa process. If the payment is missing, the petition will be rejected by the Department of State or the Department of Homeland Security (DHS).
The rule also affects those applying for an H-1B visa from outside the US. If their application does not include the required payment, it will not be approved. Only in rare cases, where it serves the national interest, will exceptions be considered.
Who Will Be Most Affected With H-1B Visa $100,000 Application Fee?
This new fee is expected to hit Indian workers the hardest, as they form the majority of H-1B visa holders. Indians made up 71% of all approved H-1B applications in recent years, followed by China, according to USCIS.
There are two main groups of Indians who benefit from the H-1B program, Indian professionals working for major IT companies based in the US and Indian students who graduate from US universities with a Master’s or PhD, and then apply for an H-1B visa to stay and work.
Most Indian employers in the US are employed in STEM fields. About 65% of Indian H-1B visa holders work in computer-related jobs, according to a BBC report from 2023. The median salary for H-1B holders reportedly is around $118,000 per year.
The new $100,000 fee could make it very difficult for mid-level professionals, entry-level employees, and recent graduates to afford staying in the US with the given average salary.
Why Has This Rule Been Introduced?
The Trump administration says the rule is intended to prevent abuse of the H-1B program and protect American jobs. According to the order, some US workers have been replaced by cheaper foreign labour, especially in the tech sector.
It is argued that the high fee will limit unnecessary applications and force companies to hire foreign workers only when truly needed. However, critics believe it may have a negative impact on the US economy, especially in industries that depend heavily on global talent, especially workers from India and China.
What Happens Next For H-1B Visa Holders?
The US issues 85,000 H-1B visas annually through a lottery system. With the new rule, many existing and future visa holders may struggle to afford the annual fee, and lose job opportunities if employers choose not to pay the fee. They can also be forced to leave the US if unable meet the new financial requirement.
For Indian students and recent graduates, the change may mean fewer job prospects, more financial pressure, and limited chances to stay and work in the US after completing their studies.
Although the H-1B visa is temporary (valid for up to six years), many visa holders use it as a path to permanent residency (green card). The new fee could slow down or block that path for many, especially those just starting their careers in the US.
Washington D.C., United States of America (USA)
September 20, 2025, 05:43 IST
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