U.S. Imposes Massive H-1B Fee Hike — Indians Feel the Heat

 U.S. Imposes Massive H-1B Fee Hike — Indians Feel the Heat

U.S. Imposes Massive H-1B Fee Hike — Indians Feel the Heat

In a move that has sent ripples through the global tech community, the U.S. government has introduced a sweeping change to its H-1B visa policy. From September 21, 2025, companies seeking to employ new H-1B visa holders will have to pay a whopping US$100,000 fee — a drastic leap from earlier visa filing costs.

Importantly, this fee applies only to new petitions; renewals or existing visa holders are not subject to this new levy.

Why It Matters to Indian Professionals

India remains the largest beneficiary of the H-1B program, typically securing over 70% of new H-1B visas annually.

With this fee hike:

Cost Burden on Firms: Indian IT companies that extensively use the H-1B route are now facing a significantly higher cost for hiring foreign skilled labor for U.S.-based operations. Nasscom has warned that this could disrupt ongoing projects and complicate operational planning.

Family & Societal Impact: New Delhi is cautioning that the sudden increase may cause "humanitarian consequences," especially for the families of impacted workers. Issues may include uncertainty of staying in the U.S., financial strain, and disruptions to family life.

Drop in Interest / Applications: Even before the fee hike, H-1B registrations for fiscal year 2026 saw a sharp decline. Eligible registrations dropped from ~470,342 in FY2025 to ~343,981 in FY2026 — a fall of about 27%.

Some of this drop is attributed to policy tightening (including rules about multiple registrations per applicant), but the new fee has raised the stakes.

Reactions & Voices

Nasscom (Indian IT industry body) voiced strong concerns, calling the fee hike abrupt and warning of operational disruption for tech firms deploying staff onshore in the U.S.

India Today

Indian Government raised issues of family disruption and “humanitarian consequences,” and called for U.S. authorities to address these impacts.

Tech Leaders like Zoho founder Sridhar Vembu urged those affected not to be paralyzed by fear, and suggested this might be a moment for some tech professionals to return to India and help rebuild local capabilities.

Wider Implications

This change could trigger several downstream effects:

Increase in Offshoring / Localization: Companies may prefer doing more work outside the U.S. rather than paying enormous costs for onshore staffing. Indian IT firms might invest even more in local delivery or in other countries.

Competitive Pressure: Smaller companies may struggle more than big tech firms, which can absorb high cost shocks. The changes may favor large, established players in the long run.

Talent Flow & Brain Drain: As the cost of getting to work in the U.S. rises, some might reconsider the chase altogether. This could mean talent stays in India or looks to other destinations.

Verdict & What to Watch

The $100,000 H-1B fee is one of the steepest visa cost changes in recent U.S. history. For Indian tech professionals who have long viewed the H-1B route as a path to global opportunities, it represents a jarring shift.

What matters next:

How U.S. courts and legal frameworks respond — some experts question whether such a high fee can be imposed by executive order.

Whether the fee will be modified, exemptions broadened, or implementation delayed due to lobbying or diplomatic pressure.

How Indian firms adapt: hiring models, project delivery, staffing strategies.

How many professionals decide to stay, return, or choose alternate destinations.