New H-1B Visa Fee: How the $100K Policy Could Reshape Tech Immigration to the U.S.
Steeper costs put the U.S. dream further out of reach for tech workers who want to migrate to the U.S.
For decades, the H-1B visa held the door to the American Dream. Indian, Chinese, and foreign engineers, scientists, doctors, and teachers immigrated to the US and built new lives, staffing labs, startups, hospitals, and classrooms. That pipeline didn't merely transform individuals; it transformed both countries. In India and other countries, small-town coders became dollar earners, and families vaulted into the middle class. In the US, the influx of talent fuelled innovation. For example, the Indian-origin executives now running Google, Microsoft, and IBM.
But that dream now has a new price tag of $100,000. President Donald Trump unveiled a sweeping policy on Friday that would impose a $100,000 fee for new H-1B visa petitions, up from the current $215 registration fee. If enacted, the change could sharply curtail new petitions and redefine the immigration landscape.
What the New $100,000 H1-B Policy Means
The H-1B programme, launched in 1990 to bring global talent into the US workforce, now faces one of its biggest changes. At the policy announcement, Commerce Secretary Howard Lutnick said first-time applicants would be subject to a new $100,000 yearly fee starting with the February 2026 lottery. Hours later, White House officials walked that back, clarifying it will instead be a one-time charge and will apply only to new applicants abroad, not current visa holders.
Trump’s framing of the policy was blunt. “The company needs to decide... is the person valuable enough to have a $100,000-a-year payment to the government, or they should head home, and they should go hire an American.”
The new policy also gives Homeland Security the power to issue exemptions for individuals, companies, or even industries, but otherwise the fee stands for one year unless extended.
Who will be hit the Hardest
Indians dominate the H-1B system, making up more than 70% of recipients in recent years. In tech, the figure is even higher, with over 80% of H-1B computer jobs going to Indian nationals, a number that has barely shifted in a decade. The medical sector also leans heavily on the visa. In 2023, over 8,200 H-1Bs were approved for hospitals.
For many, this is devastating news. Experts note that the median salary for new H-1B employees was just $94,000 in 2023, lower than the $100,000 fee itself. That means most new hires would not even make enough to cover the cost, making sponsorship unattractive to many employers.
Indian students are also bracing for impact. With one in four international students in the US coming from India, the new policy could derail career plans. “It felt like a direct attack,” said Sudhanshu Kaushik, founder of the North American Association of Indian Students, to the BBC. “The most lucrative route to entering the American workforce has now been obliterated.”
India may feel the sharpest shock, but it is not alone. China was a distant second in H-1B numbers at 11.7%, according to government data. South Korea, still reeling from a 4 September raid by immigration authorities on a Hyundai battery plant in Georgia, also signalled it was paying close attention to the policy shift. For these countries, the change threatens to further complicate an already tense climate for their workers in the US.
What This Means for US Companies
The fallout will not just be personal; companies will feel it too. For years, big tech firms and hospitals relied on H-1B workers to fill critical shortages in engineering, research, and medicine. A sudden $100,000 fee forces employers to rethink whether sponsoring talent is worth the cost.
That rethink began almost immediately. Microsoft, JPMorgan, and Amazon advised H-1B employees to remain in the US, warning those abroad to return before midnight on Saturday. Internal emails reviewed by Reuters show how urgently firms are moving to shield their workforce, a sign of just how disruptive the policy could be.
If the policy holds, companies may pass the added cost to US clients, raising prices for goods and services. Others may subcontract overseas, hire more contractors, or reduce innovation overall. Small businesses and startups, without Amazon and Google's lobbying clout, will disproportionately bear the brunt.
Nicole Gunara, Principal Immigration Attorney at Manifest Law, notes that “larger employers may be able to absorb the cost as part of their overall talent strategy, while smaller businesses might find it harder to move forward with sponsorship.”
She builds on this point, stating that “in practice, this could mean more H-1B hiring gets concentrated among bigger companies, while startups and niche firms will need to carefully weigh the fee against other options for meeting their workforce needs.”
Industry bodies like NASSCOM (National Association of Software and Service Companies) warn of business continuity risks, with companies repricing deals or delaying projects. Even if the largest employers are exempted, the larger ecosystem of healthcare, education, and small tech firms may struggle.
A New Chapter in US Immigration
The US has been the elite choice of foreign talent for decades. The H-1B program was a symbol of that, despite its flaws and controversies. This new policy signals a shift, a push to prioritise domestic hiring even at the expense of international talent pipelines.
Experts warn that if skilled workers turn away from the US, they will look elsewhere. Canada, the UK, Australia, and Europe are all competing for the same talent. Universities could also feel the shock as fewer international students enrol, cutting into a vital source of revenue and diversity.
Conclusion
The $100,000 H-1B visa fee is not just a new tax, it is a test. A test of how much US companies value global talent. A test of whether America still wants to be the magnet for skilled workers. And a test of how far individuals are willing to go, financially and emotionally, to chase the American Dream.
For now, legal challenges loom, and exemptions could soften the blow. But one thing is clear. The path to America just became harder, costlier, and far less certain.
David Adubiina
